Setup Guide · Sales Tax
Updated April 2026
Preface: To view the Taxes under Setup you need to have the Manage Taxes permission in your user role, otherwise you will not be able to see or access Taxes under Setup. (updated - 05/07/2026)
Trackr iO supports sales tax across all 50 U.S. states. Because tax rules vary by location, product type, and customer status, the system lets you configure tax at every level — from organization-wide rates down to individual pools and contacts. Set it up once, and tax is applied automatically on every quote and invoice.
How Tax Is Calculated
The Tax Group assigned to the pool (determined by ZIP code)
The Tax Category of each product line (e.g. labor vs. parts)
Whether the customer holds a tax exemption
Your organization's configured Tax Rates
Create Your Tax Rates
Tax Rates are the individual components that make up a total tax charge — for example, a State Tax rate or a County Tax rate. You'll combine these into Tax Groups in Step 2.
Go to Setup → Sales Tax → Sales Tax
Click Add Sales Tax
Enter the following:
Tax Name — e.g. CA State Tax
Tax Rate (%) — supports up to two decimal places
Tax Exempt Categories — any product categories exempt from this rate
Click Save
You can edit or delete any Tax Rate from the list view at any time.
Create Tax Groups
Tax Groups bundle multiple Tax Rates together so you can assign a single group to a pool. This is common in locations where state, county, and city taxes all apply simultaneously.
Go to Setup → Sales Tax → Tax Groups
Click Create Tax Group
Enter the following:
Tax Group Name — e.g. San Diego County – Standard
Grouped Taxes — select the Tax Rates that apply to this location
Tax Exempt Categories — optional, to override exemptions at the group level
Click Save
💡 Tip: Not sure what taxes apply to a ZIP code? Use the Avalara Sales Tax Calculator to look up the correct rates before building your group.
Set Up Tax Categories
Tax Categories are assigned to products and control whether a line item is taxable. Many states tax parts but not labor — categories let you reflect that distinction automatically.
To create a Tax Category:
Go to Setup → Sales Tax → Tax Categories
Click Create Tax Category
Enter a name — e.g. Labor, Parts, or Chemicals
Click Save
To assign a category to a product:
Open the product record in your price book
Locate the Tax Category dropdown (above the Active toggle)
Select the appropriate category and save
Assign a Tax Group to Each Pool
Every pool must have a Tax Group assigned so quotes and invoices apply the correct tax for that location.
Open the pool record
Find the Tax Group field
Select the applicable Tax Group for that pool's ZIP code
Save the record
📋 Note: Tax Group is a required field. If a pool has no Tax Group assigned, you will be prompted to add one before a quote or job can be created.
Set Customer Tax Exemptions
If a customer holds a valid tax exemption certificate, you can flag their contact record, so no sales tax is applied to their invoices.
Open the customer's contact record
Toggle Tax Exempt to ON (located above Contact Notes)
Save the record
💡 Tip: You can upload a copy of the customer's exemption certificate using the existing file upload field on the contact record.
How Tax Appears on Quotes & Invoices
Once your setup is complete, tax is applied automatically when products are added to a quote or job.
On the edit screen — each line item shows its assigned Tax Code or Group. You can manually override this if needed. Any manual selection is preserved if the quote is later converted to a job.
In the tax summary — between Subtotal and Total, you'll see a combined tax line. Tap or click it to expand the full breakdown by individual tax code.
On the PDF — each tax code is listed with its rate and amount, followed by a total tax figure, giving customers complete visibility into how their tax was calculated.
Frequently Asked Questions
What if I enter an incorrect ZIP code on a pool?
The system will flag missing or invalid ZIP codes during quote and job creation. You'll be prompted to correct the address before proceeding.
Can I override the tax on a specific line item?
Yes. The Tax Code / Group dropdown on each product line can be updated manually at any time. Manual selections are preserved through edits and Quote-to-Job conversions.
What happens to tax when an invoice is voided or cancelled?
Tax on voided or cancelled invoices is reversed automatically. If the cancellation occurs within the same billing month, the tax amount will not be recorded to your tax payables account.
Can I edit an invoice from a previous month?
No. Invoices from a prior month cannot be edited directly. To make a correction, cancel the original with a credit memo and issue a new invoice. This keeps your tax records accurate and compliant.
How do I handle a customer who provides an exemption certificate after being invoiced?
Mark the customer as Tax Exempt on their contact record, then work through your standard credit/reissue process to refund the tax charged on previous invoices.
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Still have questions? Use the Avalara Sales Tax Calculator to verify rates by ZIP code or contact our support team by email: [email protected] and we'll help you get set up.