A T for taxable will appear next to this field if the item is taxable, or N for non-taxable.
Each item you enter on the sales screen assumes the standard taxable status for that major class code (see Enter/Edit Major Class Codes for details). So you rarely have to change the taxable status of an item on the sale screen. You may need to change the tax status if you are selling an item to a reseller, or if you are sending an item out of state, or if you are selling an item on a retail basis but you usually only sell wholesale. If you need to change the tax status, follow this step. Make sure the cursor is highlighting the item you need to change. If you have already gone on to another line on the sale, press <↑> to move to the desired item. Next press <Page Down>, and a question similar to below will appear
For This Item, Charge: Sales Tax? Y Luxury Tax? Y Local Tax? Y
The names of the taxes will appear as you entered them in the Store Information Defaults screen. Choose <Y> for each tax that you want to charge on the highlighted item, choose <N> for each tax that should not be charged on this item.