> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.cloudbridal.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Sales Tax Setup

The [Sales tax settings](https://go.cloudbridal.com/settings/taxes) page sets your tax rates, which item types each one applies to, and what gets taxed on an order.

## Tax Rates

1. Go to [Sales tax settings](https://go.cloudbridal.com/settings/taxes)
2. Click **Add tax rate**
3. Enter:

- **Name**: A descriptive name (e.g., "State Sales Tax", "City Tax")
- **Rate**: The percentage, e.g. 6.25
- **Item types**: Tick the item types this rate applies to. Orders for those types are charged this rate by default

Each item type can have one rate. Ticking a type that already has another rate moves it to this one. Item types without a rate aren't taxed; the **Tax rates** card lists them. A new item type isn't taxed until you tick it on a rate.

A rate that's deactivated, or set to 0%, isn't added to new orders. Orders already taxed at it keep it.

### Threshold-Based Tax Rates

For taxes that only apply above a set price (like Massachusetts, where clothing under $175 is tax-exempt):

1. Open the tax rate and turn on **Only tax items over a set price**
2. Set **Applies above**: the item price, plus any charges you tax under **What gets taxed**, counts toward this amount
3. Choose **What is taxed** once an item is over the threshold:
   - **Only the amount above** the threshold
   - **The whole price**

### Tax Exemptions

To leave tax off a particular order:

1. Create a rate at 0% and name it something like "Tax Exempt"
2. When creating or editing an order, choose this rate instead of the default

## What Gets Taxed

- **Charge tax on alteration prices**, **Charge tax on additional work** and **Charge tax on additional fees**: Each is taxed at the same rate as the item it's for. Turn one off if that charge isn't taxed where you are
- **Prices include tax**: Customers pay exactly the price shown, with the tax already inside it. Usual in the UK, Europe and Australia. When off, tax is added on top of your prices
- **Rental tax rate**: Shown when rentals are on. The rate charged on rentals, in place of their item type's. Enter 0 to leave rentals untaxed

## Checking Your Setup

The **Sample order** in the **Check your setup** card shows what an order would charge with your settings, including unsaved changes. Pick a rate, enter an item price, quantity, discount and any alterations, additional work or fees, and see the tax and total. Nothing is saved.