# Sales Tax Categories
In order to collect sales tax, you must first create one or more sales tax categories.
The sales tax categories define the tax rates that apply for each of the taxes you are tracking.
To add a new sales tax category click on Items->Sales Tax and then click Add Sales Tax Category.
Enter the name and the tax rate(s). Rates are entered as a number representing the percentage, to charge 5% tax simply enter 5 in the appropriate Tax rate field starting with Tax1 rate.
Click Save Sales Tax Category when finished.
The page will refresh so that you can add more categories if needed. To return to the previous page, click Back to Sales Tax Categories.