Turn on the sales tax lookup in the Tax Rates screen
Use the Tax Rates screen to turn on the sales tax lookup, so Xero automatically calculates and adds tax to invoices for your US-based customers.
- In the Settings menu, select General Settings.
- Under Organization, click Tax Rates.
- Click Sales Tax Lookup.
- Select the Use sales tax lookup checkbox.
- Enter the physical address of your business (if you haven't already added your physical address in Xero).
- Enter the states where your business is registered to collect sales tax.
- Click Save.