Each tax rate is defined by a Tax Code.

• Think of it this way: There is a general Tax Area; then, within that Tax Area, there are Tax Codes.
• You can create as many rows (Tax Codes) under these fields as you want, but often, you will only need one.
• The first row is the default tax rate for the Tax Area you are defining.
• So, for Vermont, the first row is simply the Vermont sales tax.
• Any additional rows are for exceptions.
• Let's say you live in a state where clothing is not taxed, or where alcohol is taxed higher than the standard item.
• These would be exceptions to the standard state tax.
• You establish an item's Tax Code in that item's Product Properties program.
• IMRCHNT will then know which items are exceptions to the general tax rate.

Also here is a bit more details on the Tax Rates and Tax Codes.

https://imrchnt.screenstepslive.com/s/17626/a/807248-tax-area#create-a-new-tax-area-code