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Avalara Help Center

Why is the tax rate incorrect?

Overview

You see that the tax rate on a transaction does not match your expectation.

Environment

AvaTax

Resolution

  • Review the transaction to make sure it includes the customer's full and valid address. If you have recently moved to AvaTax and the address was previously calculated based on zip alone, you may see a difference as AvaTax calculations are more detailed
  • Review the items, some tax codes cause items to be taxed at a special rate.
  • Review your nexus to make sure all locals where you collect tax are selected.
    • ​You may be obligated to collect tax in fewer locals than apply at the customer address. Prior to making any changes to Nexus settings, please consult with a tax professional (CPA, Tax Attorney, State DOR, or Avalara Professional Services) to confirm that you should collect in the new area.

 

Note: In general, you can check and adjust tax calculations at the line item level by using Review these calculations. To change the tax calculations for a line item, click the expand arrow next to the line item you want to adjust and then click Review these calculations.

On the tax calculation page, review how taxes were calculated for this line item and get help with any changes that you might want to make. This page can help you change the rate used to calculate tax on the item, change whether or not you collect taxes in this jurisdiction, change the address used to calculate tax, and more.

See alsoEdit, commit, and cancel transactions