> For the complete documentation index, see [llms.txt](https://docs.rmhpos.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rmhpos.com/store-manager/configure-pos-and-store-manager/store-financials/computing-tax-on-item-weight.md).

# Compute tax on item weight instead of price

1. Set up a **Sales Tax** type based on weight:
   1. Click **Setup**.
   2. Expand **Financial**.
   3. Click **Sales Tax**.
   4. Click **New**.
   5. In the **Description** field, type a description of the sales tax type, e.g., State Tax on Weight.
   6. In the **Code** field, type a short code for the sales tax type, e.g., ST-WEIGHT.
   7. In the **Fixed Amount** field, type the amount of sales tax, e.g., 0.05.
   8. Click **Save And Close**.

<div align="left"><figure><img src="/files/X6kutH59AVFZVHqUmH7R" alt=""><figcaption></figcaption></figure></div>

2. Set up an **Item Tax** type based on weight:
   1. Click **Setup**.
   2. Expand **Financial**.
   3. Click **Item Tax**.
   4. Click **New**.
   5. In the **Description** field, type a description of the item tax type, e.g., Tax on Weight.
   6. In the **Code** field, type a short code for the item tax type, e.g., TAX-WEIGHT.
   7. Select **Compute tax on Item Weight instead of Price**.
   8. In the **Apply individual taxes in the following order** section, for the 1st tax select the Sales Tax type you set up earlier, e.g., State Tax on Weight.
   9. Select **On Receipt** to print the sales tax on receipts.
   10. Click **Save And Close**.

<div align="left"><figure><img src="/files/7NvjwP0jB1PBZuNDXxGX" alt=""><figcaption></figcaption></figure></div>

3. Set up an item so that POS computes tax on the item's weight:
   1. Click **Merchandising**.
   2. Click **Items**.
   3. Look up and open the item.
   4. Click the **General** tab.
   5. From the **Item tax** drop down, select the Item Tax type that you set up earlier, e.g., Tax on Weight.
   6. Click the **Special** tab.
   7. In the **Weight** field, type the weight of the item, e.g., 100.
   8. Click **Save And Close**. Now, when the item is added to a transaction in POS, the tax is calculated on the item's weight. For example: Item Tax ($0.05) x Weight (100) = $5.00.

<div align="left"><figure><img src="/files/CPxB9Sn6dMuoyOPIosXY" alt=""><figcaption></figcaption></figure></div>


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