> ## Documentation Index
> Fetch the complete documentation index at: https://docs.flashquotes.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Set up tax rates

> Create and name sales tax rates for quotes and invoices

Add a tax rate before you charge sales tax on quotes and invoices.

Steps:

1. Go to **Settings > Tax rates** and click **Add tax rate**
2. Enter a **Name**, like "Orange County Sales Tax - 8.75%"
3. Enter the **Tax rate** as a percentage, like 8.75
4. Click **Add tax rate**

You can also add a rate from **+ Add tax rate** in a location's **Default tax rate** menu, or from the tax rate picker on a quote.

**What happens next:** The rate shows up in the tax picker on quotes and invoices.

<Tip>
  The name is the exact label your customers see on quotes and invoices. Include the area and percentage so it's clear.
</Tip>

To apply a rate automatically, set it as the location's default tax rate. See [Location Management](/settings/general#location-management).

**Common issues:**

* Invoice shows the wrong tax label: The label comes from the tax rate's name. Add a rate with a clearer name and select it.
* Your tax rate changed: Add a new rate and use it on new quotes. Keep the old rate so past invoices aren't affected.
* Need state and local taxes listed separately: Each quote or invoice uses one tax rate. Create one rate with the combined percentage.

## Related articles

* [Sales tax report](/reports/sales-tax)
* [Invoice Management](/invoices)


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