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Why does my calculation show a tax rate when my items are nontaxable?


Why does my tax calculation include a tax rate when the item being calculated is nontaxable?  Shouldn't the rate be "0".


Avatax Calc


  • The tax rate for a jurisdiction and the taxability of an item are not the same thing.  
  • Whether or not an item is taxable does not affect the tax rate of a particular jurisdiction, it only affects whether or not the item is subject to being taxed at that rate.  
  • So all items will display a tax rate in the tax calculation regardless of their taxability.