> 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/setting-up-item-taxes.md). # Item taxes 1. Click **Setup**. 2. Expand **Financial**. 3. Click **Item Taxes**. 4. Do one of the following: * To add a new item tax, click **New**. * To edit an existing item tax, select it and click **Edit**. * To copy an existing item tax, select it and click **Copy**. You must enter a new **Description** and **Code**, but all other values are copied. 5. Enter information about the item tax.

Field	Description
Description	The name of the item tax type.
Code	A unique code for the item tax type, e.g., liquor, tobacco, clothing.
Compute tax on (Price-Cost) instead of Price	Select this option if you want to calculate tax using price - cost instead of price.
Compute tax on Cost instead of Price	Select this option if you want to calculate tax on the wholesaler's cost instead of price.
Compute tax on Item Weight instead of Price	Select this option if you want to calculate tax as a fixed amount per item, e.g. excise tax, instead of price. For example, if the excise tax is $0.05 per milliliter, the selling price is $10.00, the cost is $7.00, and the value in the Weight field of the item is 100, the tax calculated will be $5.00 ($0.05 x 100 = $5.00).
Apply individual taxes in the following order	Select all of the taxes that apply to the item type, in the order that you want them to display on the POS screen. Select On Receipt if you also want to display the sales taxes on the receipt.

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