Help & Resource Center

Making a Department Non Taxable


We created an item for people to purchase raffle tickets for a local fundraiser. Since it is a donation, they are nontaxable. However, I have a customer who just purchased tickets and they were charged tax. How do I change this so these items do not get taxed? 


The way to do this is to create a department for these and assign the product to that department. 

You can then make that department non-taxable in Store Manager by going to WEBSITE>Setup>Sales Tax.

You can add a tax rule by hitting "Add" and filling in the following fields.

  1. State - the state that you want this rate applied to. (You have to make one for each state you collect tax for.)
  2. Department - the department you want to make non-taxable. (Choose from the drop down.)
  3. Tax Code - create a name to differentiate it from the others.
  4. Tax Rate - the percentage to be applied to this department. (In this case, zero.)
  5. Start and End date. 
  6. Then hit Update.

Now any products in that department will not be charged tax at checkout.