> For the complete documentation index, see [llms.txt](https://knowledge-base.zumrails.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://knowledge-base.zumrails.com/invoicing-and-subscriptions/tax-rates.md).

# Tax Rates

> You can create and save multiple tax rates and apply them to invoices, subscriptions, and payments whenever you use checkout.

{% hint style="info" %}
Tax rates are not automatically set when creating products, invoices, or subscriptions and must be set when you create your tax rate.
{% endhint %}

### Creating a tax rate in the portal

1. Log in to your P**ortal**
2. Click **Products > Tax Rates**
3. Click **Add new tax rate**

<figure><img src="/files/oEFlyQedDesXKakjVmj7" alt=""><figcaption></figcaption></figure>

4. Fill out all the **fields**

<figure><img src="/files/c5GBbbzWSRfoMdPqv86a" alt=""><figcaption></figcaption></figure>

5. Click **Save.** You will be redirected to the home page where you can view all created tax rates

<figure><img src="/files/3pz7NoPPu0hjiDZrgJ76" alt=""><figcaption></figcaption></figure>

#### Field definitions

| Tax type                | This is the display name of the tax that will appear on the customer invoice, checkout, and hosted page. You can select from GST, HST, PST, Custom\*                                                        |
| ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Description             | The description is for internal use only and will not be visible to the customer                                                                                                                            |
| Rate                    | the % of tax applied                                                                                                                                                                                        |
| Exclusive vs. Inclusive | The tax is included or excluded in the invoice subtotal                                                                                                                                                     |
| Province                | If a particular region is selected and the checkbox to automatically add the tax to invoices is checked, Zūm Rails will add the rate to the customer invoice/subscription by their billing/shipping address |

{% hint style="info" %}
If you select custom, you must add a description
{% endhint %}

**Exclusive vs. Inclusive**

The following table illustrates a 13% tax rate modifying the total amount due, depending on whether it’s exclusive or inclusive.

| Tax           | Subtotal | Tax Due                               | Total                 |
| ------------- | -------- | ------------------------------------- | --------------------- |
| 13% Exclusive | $5.00    | $0.65                                 | $5.65 ($5.00 + $0.65) |
| 13% Inclusive | $5.00    | $0.65 (already included in the price) | $5.00 ($4.35 + $0.65) |

When determining tax amounts, Zūm Rails rounds to the smallest currency unit (2 decimals) before summing across the entire invoice.

You can add multiple tax rates to invoices/subscriptions or for checkout links.