> ## Documentation Index
> Fetch the complete documentation index at: https://help.kneadapp.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax-Exempt Clients

> Issue invoices without sales tax for wholesale, resale, or non-profit clients.

## Overview

Some of your clients shouldn't be charged sales tax — a café that resells your cookies, a wholesale account, or a non-profit, for example. Knead lets you mark a client as tax-exempt so every one of their invoices is issued without sales tax, automatically, no matter what your default tax rate is.

## Marking a Client Tax-Exempt

1. Open a client's form — either when adding a new client at `/customers/clients/new` or editing one at `/customers/clients/[id]/edit`.
2. Check the **Tax exempt** box. The field explains: "invoices for this client are issued without sales tax (e.g. wholesale, resale, or non-profit)."
3. Save the client.

<img src="https://mintcdn.com/kneadapp/GEXsIwkkXZhBlwIA/images/client-tax-exempt.png?fit=max&auto=format&n=GEXsIwkkXZhBlwIA&q=85&s=48d03f1abcccd3b48842a55605096f92" alt="The client edit form showing the Tax exempt checkbox and its explanation" width="2880" height="1800" data-path="images/client-tax-exempt.png" />

Once set, **every invoice** for that client is issued with no sales tax line — regardless of the default tax rate you've configured for your business.

<Note>Good to know: Tax exemption follows the client, not the invoice. As long as the client is flagged tax-exempt, all their future invoices skip sales tax automatically.</Note>

## Overriding Tax on a Single Document

If you only need to change tax for one quote or invoice — rather than for a whole client — use the per-document override instead. Every quote and invoice has a **Tax Rate (%)** field that overrides your business default for that one document.

| Tool                                          | When to use it                                  |
| --------------------------------------------- | ----------------------------------------------- |
| **Tax exempt** checkbox (on the client)       | This client should *never* be charged sales tax |
| **Tax Rate (%)** field (on the quote/invoice) | Just this one document needs a different rate   |

<Tip>Pro tip: For resale clients, keep a copy of their resale certificate on file. The tax-exempt flag handles the invoicing, but you'll want documentation if your state ever asks why you didn't collect tax.</Tip>

## Related Articles

* [Tax Settings](/integrations-and-setup/tax-settings)
* [Your Client List](/customers/your-client-list)
* [Setting Up Your Business Tax Identity](/bookkeeping-and-taxes/business-tax-identity)

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