References - Tax Rate & Tax Type

To charge a sales tax on a procedure, a Tax Rate and Tax Type will need to be created and associated. Multiple tax systems can be established in order to charge various rates of tax, or to accommodate a raise in taxes without impact past charges.

Creating the Tax Rate and Tax Type

The Tax Rate and Tax Type are created the same way but are used differently in the MacPractice software.

  • The Tax Rate: Is used in the New Charge window and to create a Tax Type for the Fee Schedule.
  • The Tax Type: Is used in the Fee Schedule area to default the desired Tax Rate.


Tax Rate

First, create a new Tax Rate in the Tax Rate node of the References ability by clicking the sidebar plus button to create a new record. Rename the record, adjust the rate of tax, and add any description needed. Save the new Tax Rate, then repeat the process if more Tax Rate records are needed.


The Tax Rate can now be added to any Tax Type.

Tax Type

Add a new Tax Type in References within the Tax Type node by clicking the sidebar plus button.


Once the new record is in the sidebar, enter the following information:

  • Tax Type: Enter a desired name for you new tax type.
  • Tax Rate: Select a tax rate from the menu, which lists all Tax Rates from the Tax Rate node.
  • Description: Add any description needed.

Save the new Tax Type, then repeat the process if more Tax Type records are needed. Each Tax Type can then be added to a procedure code in the Fee Schedule. In References, select the Fee Schedule node followed by the desired Fee Schedule. Search for the codes to which a tax rate should be assigned. Check the Taxable checkbox then select the Tax Type from the Tax Type menu. Save the entries.


When this code is entered in the New Charge window, the taxable amount will appear automatically.


Using a Tax Rate

Once a Tax Type has been created, with a Tax Rate assigned, the Tax Rate can be applied to the patient's ledger in two ways:

  • Automatically, through a default Tax Rate assigned to a Fee Schedule code.
  • Manually, by selecting the Tax Rate when adding any code through the New Charge window.

Using a Default Tax Rate

When using a defaulted Tax Rate you will just need to open a New Charge window in the desired patient's ledger, then enter the needed code.

You will notice in the charge window that the Taxable checkbox is already enabled and the Tax Rate is defaulted to the tax type set in the Fee Schedule. The tax amount that will be added to the charge will also be shown in the charge window.

Using Manual Tax Rate Selection

If your office wants to manually select the tax rate for the desired charges; your office will need to go to the patient's ledger and enter the code in the New Charge window.

With the charge entered, check the Taxable checkbox. This will display the Tax Rate pop-up menu. Select the desired tax rate your office wishes to add on to the charge. Until a tax rate is selected the Tax amount will remain at a 0.00 amount. Once a Tax Rate is selected from the provided list, the Tax amount will be calculated.

The selected Tax Rate will only affect this code at this time when entered. When this code is entered again, the tax information will revert to the default for that code, as set in the Fee Schedule reference.

Updating the Tax Rate & Tax Type

To update the Tax Rate and Tax Type, enter a new tax rate into the Reference ability and update the Tax Type to which the Fee Schedules codes have been associated.

Create a new Tax Rate:

First, create a new Tax Rate reference by clicking the sidebar plus button while on the Tax Rate node in References. The existing tax rates may be associated to existing information. Creating a new Tax Rate will prevent any changes to existing information.


Update The Tax Type:

To update the Tax Type, select the specific Tax Type record from the Tax Type node in the sidebar of the References ability. In the Tax Rate menu, select the newly created Tax Rate and save the changes.


When this information is saved, the new Tax Rate will apply to all Fee Schedule codes in which the Tax Type has been associated. When a code is entered in the New Charge window, the new Tax Rate will automatically appear.


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