Setting Up a Sales Tax Cap in MaxxTraxx

Setting Up a Sales Tax Cap in MaxxTraxx

Some states cap the total sales tax that can be collected. If there’s a maximum taxable amount, you can set this up using Tax Code 5.

Steps:

  1. Go to: Setups → In the Accounting column E, click Sales Tax Rates.
  2. Click Add Tax Rate.
  3. Fill in:
    • Tax Code
    • State/Province District
  4. Check Use Tax Type 5 (Special Option).
  5. Fill in:
    • Description
    • Part/Labor Rate (tax rate), e.g., 9.75%
    • Maximum Dollar Amount to Tax — this is the sale amount on which tax will be applied, not the tax amount itself.
  6. Click OK.

How to Calculate the Maximum Dollar Amount to Tax:

  • Example: If the maximum tax collected is $500 and the tax rate is 9.75%:
  • $500 ÷ 0.0975 = $5,128.21

This means only the first $5,128.21 of the sale will be taxed; anything above that amount will not have additional sales tax applied.

 


    • Related Articles

    • Changing sales tax rates

      Updating Sales Tax Rates in MaxxTraxx Many municipalities will implement new tax rates beginning June 1st, 2025. To ensure accurate sales tax collection in MaxxTraxx, follow these two steps: Step 1: Update Sales Tax Rates for Future Transactions ...

    • How to Print Sales Tax Report

      How to Print a Sales Tax Report in MaxxTraxx Navigate to the Report: Go to Reports from the main menu. Select Financial, then click on Tax Summary. Set Parameters: Choose your desired date range. Click Run to generate the report. Print the Report: ...

    • Ohio's Sales Tax Holiday

      Ohio has a "sales tax holiday" from Aug 1 through Aug 14 2025. During that time, any part $500 or less, is NOT subject to sales tax. The following is the link to the Ohio Department of Taxation that states the qualifications Ohio Department of ...

    • Change Sales Tax

      How to Update Sales Tax Rates and Recalculate Open Invoices Step 1: Update Sales Tax Rates for Future Transactions Go to Setups > Accounting and Payroll > Sales Tax Rates Highlight the tax rate you want to change and click Edit Make your changes and ...

    • Did You Know - Quickly view the Subtotal for a Single Job, including Sales Tax & Add-ons, on a Repair Order

      Did You Know You can quickly find out the Subtotal for a Single Job, including Sales Tax & Add-ons, on a Repair Order? Common Question: You have a Repair Order with many line items including multiple different jobs and your Customer wants to know how ...