---
title: "How does TaxCloud round sales tax?"
description: "TaxCloud rounds to the 5th decimal based on the number of items within the sales order."
canonical_url: "https://support.taxcloud.com/articles/how-does-taxcloud-round-sales-tax-ULLkPSax4j"
md_url: "https://support.taxcloud.com/articles/how-does-taxcloud-round-sales-tax-ULLkPSax4j.md"
---
# How does TaxCloud round sales tax?

TaxCloud rounds to the 5th decimal based on the number of items within the sales order.

Example 1:

* Line item 1: Hat
* Quantity: 1
* Item Price: $10.00
* Sales tax rate: 0.07253333
* TaxCloud rounded rate: 0.07253
* TaxCloud resulting tax amount due: $0.73 ($10\*0.07253)

Example 2:

* Line item 1: Hat
* Quantity: 2
* Item Price: $10.00
* Sales tax rate: 0.07253333
* TaxCloud rounded rate: 0.07253
* TaxCloud resulting tax amount due: $1.46 ($10\*0.07253\*2)

With item rounding without including the quantity, the example 2 scenario would calculate slightly differently.

* Line item 1: Hat
* Quantity: 2
* Total Price: $20.00
* Sales tax rate: 0.07253333
* TaxCloud rounded rate: 0.07253
* TaxCloud resulting tax amount due: $1.45 ($20\*0.07253)

Both methods are generally accepted accounting principles. TaxCloud does not currently calculate with item-based rounding.