In Molo, we use Ceiling Rounding to calculate tax line item by line item. What that means in a practical application is that each invoice line in Molo rounds up to the next nearest penny to ensure you collect enough payment to cover your tax burden. 

Below is an example breakdown of items and how their tax is calculated using a tax rate of 6.35%. Molo calculates the tax on each line item of the invoice and then adds the right most column to get a tax total.


6.35 tax rate

ItemQtyPriceTotalTax Calculation at 6.35%
Line Tax Total
Item One1$15.49 $15.49 0.9836150.99
Item Two1$44.13 $44.13 2.8022552.81
Item Three1$8.95 $8.95 0.5683250.57
Item Four2$2.13 $4.26 0.270510.28
Item Five3$7.40 $22.20 1.40971.41
Item Six1$2.07 $2.07 0.1314450.14
Item Seven1$1.57 $1.57 0.0996950.1