# Set up tax rates

Create or edit individual tax rates before adding them to a tax group.

Canonical: https://demo.qixcount.com/help/taxes/set-up-tax-rates

Who can do this: Owners, or people with *Manage business settings, roles & permissions*

Where: Tax, then Sales tax

You'll need: Tax turned on in Features

A rate is one named tax component. Create rates before combining them into a group that you can select on invoice lines. You need *Manage business settings, roles & permissions*; owners have it.

## Create a rate

1. Open **Tax**.
2. Select **Sales tax**.
3. Select **Add Tax Rate**.
4. Enter **Tax Rate Name**.
5. Enter **Rate (%)**, from 0 through 100, such as 7.25.
6. Select **Jurisdiction Type**. The choices are Federal, State, County, City and Special District.
7. Enter **Jurisdiction Code** if needed. It accepts up to 10 characters.
8. Enter **Effective Date** if needed.
9. Enter **End Date** if needed. When both dates are supplied, the end date must be later.
10. Review **Compound Tax**.
11. Leave **Active** selected.
12. Select **Create Tax Rate**. You return to the Sales Tax page.

![Add Tax Rate with percentage, jurisdiction and date fields](https://demo.qixcount.com/images/help/taxes-create-rate.webp)

## Change a rate

On the Sales Tax page, select the rate's pencil icon. Change the fields and select **Update Tax Rate**. On this edit form, clearing **Active** makes the rate inactive.

To save an inactive rate, create it first, then clear **Active** on its edit form and select **Update Tax Rate**.

## What happens next

Only active rates whose effective dates have started and end dates have not passed are offered when you create or edit a group. A rate with no dates has no date restriction.

Next, [create a tax group](https://demo.qixcount.com/help/taxes/create-tax-groups). Creating a rate alone does not add tax to an invoice.

## Good to know

If **Sales tax** isn't in the sidebar, someone with settings access can turn on **Tax** in [Features](https://demo.qixcount.com/help/setup/features-and-presets).