## Zoho Billing - Product, solutions, integrations, support, and resources Index Access the complete documentation index at: https://www.zoho.com/en-sg/billing/llms.txt Use this file to discover all available documentation pages before proceeding. [Back](./) # How do tax categories work? Tax categories ensure the correct tax rate is applied based on an item’s type. In Zoho Billing, when you assign a tax category to an item, the system automatically applies the right tax rate whenever you add that item to a transaction.