Sales Tax Holidays & Product Codes (TICs)

Correctly Classifying Products for Sales Tax Holidays and Special Tax Rates

TaxCloud automatically applies any state sales tax holiday rules and other special tax rates that match your products.

However, you must assign the correct Taxability Information Code (TIC) for each item so the system knows when a special rule applies.

1. Avoid TIC 0 Unless the Item Should Always Be Fully Taxed

TIC 0 (“General Merchandise”) provides no product-specific details to TaxCloud.

Because of that, the system will always tax the item at the highest applicable rate, even when special rules or reduced rates exist.

Use TIC 0 only if:

• You want the item taxed at the maximum rate all the time.

Choose a more specific TIC whenever possible so that:

• Special tax rules—such as reduced rates for groceries, clothing, or medical items—are applied correctly.
• Temporary sales tax holidays are recognized automatically.
• Future changes to tax laws or rates for that product type are reflected without extra work.

⚠️ If you assign TIC 0 to an item that sometimes qualifies for lower or no tax, or for a special reduced rate, those savings will not apply.

2. Check Which TICs Are Tax-Free or Reduced for a Sales Tax Holiday

You can easily verify which TICs qualify for a tax holiday or other special rate:

1. Log in to your TaxCloud account: https://app.taxcloud.com/sign-in
2. On the Dashboard/Home page, locate Sales Tax Holidays.
3. Click the down arrow next to any listed holiday to view the TICs eligible for tax-free or reduced rates in that state.

This ensures your products are properly coded to capture every available exemption or discount.

3. Doing a Review of Your TIC Settings

Do a one-time review of your TIC settings to ensure every product is classified correctly for sales tax holidays and special tax rates.

• Check the full TIC list: Visit the TaxCloud TIC article in our Help Center for detailed descriptions of all product categories.
• Verify your current product TICs: Look at the TIC codes already assigned—either directly inside TaxCloud or within your ecommerce platform (e.g., Shopify, BigCommerce, WooCommerce).
• Update if needed: If you find products using TIC 0 or an outdated code, update to the most specific TIC that matches the item.

4. Need Help?

• Support questions about using the TaxCloud platform: service@taxcloud.net
• Can't find a TIC that fits your product? Request a new one be made by emailing service@taxcloud.net
• Product taxability questions (e.g., which TIC is correct): consult a CPA or your state Department of Revenue

Please note: TaxCloud cannot tell you which TIC to choose, but if you have questions about the taxability of your items, we'd recommend speaking with a CPA, or the state Department of Revenue directly. We have contact info for all states here.

By carefully assigning the most accurate TIC for every item, you ensure:

• Correct tax collection year-round
• Automatic application of special tax rates and tax holidays
• Compliance with changing state tax laws