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Tennessee Sales Tax



Here is an example of how to effect the 3-tier tax system of individual

items. In the below example state tax is 7%, the local tax up to $1,600

is 2.25% and the state surtax on items between $1,600 to $3,200 is



Change the rates below according to your local tax and when the state

rates change


$1-1600        (9.25% [7% state + 2.25% local])

$1601 to 3200  (9.75% [7% state + 2.75% state surtax])

$3200 and up   (7.0%  [7% state])


Go to "Store information defaults"


set the first tax at 9.250%

The second tax at positive 0.50%   OVER 1600

the third tax at negative 2.75%    OVER 3200


This has the effect of charging 9.25% tax on the full amount, then adding

0.50% (adding 2.75 and deducting 2.25) between after 1600 and removing

the 2.75% surtax over $3200


Set the tax words as you like - perhaps





Check each major code from the 8,3,1 Edit Major Codes screen to ensure

that all three of the sales taxes are activated for all taxable major codes


For an example - if you use the above formulas,

a $1000 item would be subject to sales tax of $ 92.50

a $2000 item would be subject to sales tax of $187.00

a $4000 item would be subject to sales tax of $360.00


Note that tax is calculated on each individual item on a sale.

It is NOT calculated on the total of a sales ticket. Therefore the

tax is not affected if you make one sales ticket with two $2500 items

totalling or two separate sales tickets of one $2500 item each.