Setting up
1) Setup page 1 Select your home state and enter the names and rates of applicable sale taxes, if different from that shown.

2) Clients
When you enter a new client on the Contacts screen, check the tax that is applicable to that client. In the picture they are shown at lower right.

3) Inventory and Charges
Set the tax rates that apply to each product or service. It defaults to all existing and new products to the value entered on Setup p.1. Where a tax does not apply to a product (Freight for instance) enter 0%.
Our example at left shows a product subject to both State and City Sales Tax, but we will also sell one where only State Sales Tax applies.
Setup is now complete

Invoicing
When you add a charge item to the invoice, the program always checks the following:
a) is customer taxable
b) is product/service taxable
If both are true, the tax is calculated at the rate shown on the respective product page. To view a product from invoice, double-click the product code.

Edit Tax by invoice
You can edit taxes easily with a click on the Tax button at upper left of invoice input form (also on quotes and auto-invoices)
To apply a tax to all products/services charged, click Apply. Click the Undo button to remove that tax from all products/services charged on this invoice. To edit any of the taxes, click the Edit button (shown in next pic).

Edit Tax by product
here you can change the individual tax rates line-by-line. You cannot change the tax amount, only the rate, which then calculates the amount, to avoid calculation errors. Enter 0 if a tax does not apply to a certain item.
This is not needed in most cases since the tax rates are picked up from your client/product/services settings mentioned above.
In the example at left we look at the Philadelphia City Sale Tax, because one product was subject to this tax, the other was not (both products were subject to State Sale Tax).

Tax on printed invoice
And this is how it looks on the printed invoice. Columns shown can be removed, resized, repositioned or renamed on Setup page 3
City tax does not show a rate because it was not applied to all products.

Customer pays and tax is extracted in accounting module
When you post receipts (enter payments received from clients) these amounts are automatically posted to accounting and taxes contained in those payments are posted to their respective ledgers.
The entries you see at left were all created with one double-click.

Tax Reports
You can print a report on all Taxes received or paid by selected date range, so you know how much tax to pay to the authorities. Click on Accounting menu, Reports button at left then select 'Tax Reports'. Choose from detailed or summary report, set a date range and click the Print button at top.
At left is an example of a transaction report for selected ledgers (the two tax ledgers we used above).