Sales tax is configured hierarchically, meaning both the state level and the customer level must be toggled on for a customer's tax to be applied. If either is missing, no tax will be charged.
Sales tax in Stella Source follows a two-tier hierarchy based on location. Both conditions must be true for sales tax to appear on an order. Think of it as two switches that both need to be turned on.
- State level: Is tax enabled for this state? See below for “What is Nexus” to learn more
- Customer level: Is the individual customer marked as taxable, or do you have their tax ID on record?
How To Configure Tax at the State Level
State-level tax is managed in the Product Management tab. Here, you can enable or disable tax collection for each state where your business has a tax obligation.
What is Nexus?
Nexus refers to your business's tax obligation in a particular state — essentially, whether your business has enough of a presence there (employees, warehouse, sales volume, etc.) to be required to collect sales tax. You should only enable a state in Stella Source if your business has established Nexus there. We recommend consulting your tax advisor to confirm which states apply to you.
How To Configure Tax at the Customer Location Level
Customer-level tax settings are managed in Customer Management., under the Customer List. Each customer by location can be marked as taxable or tax-exempt based on their status. First, select or add a new customer.
If selecting an existing customer, either add a new location or click the three-dots menu next to an existing location name. 
Once in edit mode, scroll down to the Pricing Options. Here you will find the “What is this customer’s tax status?” select either the option to charge tax or make tax exempt.
Important: If you update a customer's tax status while they have open quotes, those quotes will not be updated automatically. The change will only apply to new quotes created after the update.
How the Two Levels Work Together
Both levels must be active for tax to be applied. Here's a quick reference:
