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How to Set Up and Assign Tax Rates

Create and categorize Taxes 2.0 rates under Admin, Account, Taxes, which needs admin access to account-level settings.

Written by Euri

Cents lets you create as many tax rates as you need, organize them by category, and choose exactly which taxes apply to each location, service, and product, including tax-exempt customers.
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Use this if you're setting up sales tax for the first time, adding a new tax (like a dry cleaning or excise tax), or changing which taxes apply to a service or product.


Before you start

  • You need Admin access to Cents Business Manager.

  • Check your state or city tax website for the rates that apply to laundry and dry cleaning. Rates can differ for self-service and full-service work, so confirm with your accountant.


Step 1: Create a tax rate

  • Go to Admin > Account > Taxes and click New Tax Rate.

  • Enter a name (for example, NY State Sales Tax) and the percentage.

  • Optionally, choose or create a Tax Category to keep rates organized.

  • Leave Apply to all customers, including tax-exempt customers off for standard rates. Turn it on only if the tax legally applies to everyone, like Florida's 2% dry cleaning gross receipts tax.

  • Click Save.


Step 2: Assign tax rates to a location

  • Go to Admin > Locations, select the location, and scroll to the Tax Rate section.

  • One rate is marked as the default. It's applied automatically to anything marked taxable at this location.

  • Select any additional rates the location needs, then click Save. This makes them available, but doesn't apply them to every order.


Step 3: Choose the taxes for each service and product

  • Open the service's Pricing (or the product in your catalog) and check Taxable. Uncheck it if the item shouldn't be taxed.

  • Click Customize Taxes and select the rates that apply. The total updates as you go, for example 8.2% sales tax + 5% excise tax = 13.2%.

  • Click Save.

For example, if you offer tanning, you could apply your state sales tax plus a 10% federal excise tax to that service only, and leave laundry services at the default rate.


How taxes show in reporting

  • The Sales Tax Liability report breaks down collected tax by each rate at each location, which helps when different taxes go to different agencies.

  • Other order reports show the total tax amount.


Frequently asked questions

  • What is a tax category?
    A label to organize your rates, like State Taxes or Excise Taxes. It doesn't change how tax is calculated.

  • Can I edit a tax rate?
    Yes. Click it in the list to edit it in the side panel.

  • Can I delete a tax rate?
    Not while it's assigned to a location. Unassign it from every location and it won't be available anymore.

  • Can I use the same rate at several locations?
    Yes. Rates are created once for your account and can be assigned to as many locations as you need.

  • If I add a rate to a location, does it apply to existing services?
    No. Existing services keep their current taxes until you update them with Customize Taxes.

  • Do customers see tax rate names?
    No. Names are for you and your reports.

  • Does Cents pay my sales tax?
    No. Cents calculates tax on each order and shows what you collected, but you pay your tax agency directly.


Troubleshooting

  • Tax isn't being charged on a service.
    Check Taxable is checked on the service and the location has a default tax rate.

  • A tax rate isn't available in Customize Taxes.
    Assign it to the location first, in the location's Tax Rate section.

  • A tax-exempt customer is being charged tax.
    Check whether that rate has Apply to all customers, including tax-exempt customers turned on.


Need assistance?

Feel free to text our Cents Support team at 888-302-8809.

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