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Tax-Free Items
Set up specific categories as designate them and check 'Tax Free':

Tax will not be calculated when such items are added to the Sales Invoice.
Tax-Exempt Resellers
Entering a Tax ID in 'Reseller Tax ID' on a New-Sale Screen automatically changes the invoice to tax-exempt status.

If 'Show Buyer Work Area' has been checked in Program Setup (Sales), future sales to the same Buyer will be tax exempt.

Tax-Exempt Items
Some states only tax an item (like clothing) if its selling price is above a given amount. To process such items as tax exempt, set up one or more categories (Main Menu, Inventory, Categories) like 'clothing' and enter the applicable amount in the 'Tax Above $' field:

Alternatively the Sales-Tax Rate for single items may be changed on the Sales Invoice to be any value, including zero.
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