Recurring invoice auto-sales tax calculation incorrect. It's applying tax to nontaxable items. "Show the math" fixes it.

I'll share information about the sales tax feature in QuickBooks Online (QBO), Scott.

QBO tracks your state’s tax laws to accurately calculate sales tax and returns using the Automated Sales Tax feature. Also, it will automatically calculate the total tax rate for each sale based on the following:

• Your customer’s tax-exempt status
• Where you sell and where you ship
• Your service or product’s tax category

For more details about sales tax calculation, you can read this article: Learn how QuickBooks Online calculates sales tax.

If your customers are properly set with tax exemption and you're still getting the same issue, I recommend reaching out to our Customer Support Team. They'll pull up your account in a secure environment and help you investigate the cause of this issue further.

1. Go to the (?) Help icon.
2. Click Contact Us.
3. Enter a short description of your concern and click Let's talk.
4. Choose either Start messaging or Get a callback to get in touch with them.

Please review their support hours to determine when agents are available. This way, you can contact them at a time that is convenient for you.

You might also want to check our Income and expenses page for tips and best practices on managing your income.

You're welcome to post here anytime you need help with recurring invoices in QuickBooks Online. I'm always around to support you. Have a beautiful day.