How do I exempt a customer in Magento?

Overview

You want to know how to exempt customers from sales tax in Magento 1.

Environment

Magento 1

Resolution

• Go to Sales > Tax > Customer Tax Class > Add New
  • For Avatax Code, look at the chart below and enter the letter code that describes the type of exemption > Save Class
  • ​​​​​​In the Class Name field, enter a value such as Exempt – Federal Government
     
• Go to Customers > Manage Customers
  • ​​​​​​​Select a Customer > Account Information
  • Select the appropriate Customer Group and click Save​​​​​​​

Next steps

For more information, review the Magento 1 user guide.