If it is a per item basis, though, then taxing at a different that item at a different rate should work.  If it is cumulative per transaction, that would be a different story.

In this case, the tax is only applied to the item if it goes over $175 and then is only taxed on the amount that goes over $175. There isn't any way to do that automatically in Square.  It is per item and not a running total of clothing items.  Our State and federal governments never think of how these things will be implemented in the real world.  I guess this is taxing the wealthy as they think only the wealthy would but an item that is that expensive.

this is from the Massachusetts tax guide.

Clothing is generally exempt from the sales tax. However, any individual clothing item that costs more than $175 is taxable on the amount it goes over $175. Thus, the tax on a $200 suit would be $1.56 (which is 6.25% of the taxable $25 difference). If buying multiple items, any sales tax is charged only on individual items over $175, no matter what the total bill is.

There is a CRAZY workaround for this, but it would be insanely time consuming if you have a lot of items over the threshhold.  You could potentially create a separate tax rate for each item that goes beyond that threshhold as you know exactly how much it is that it does go beyond.

For example, if you have a $200 suit, then you know that $25 is going to be charged at 6.25% which ends up being $1.56.  This is also .0078% of the $200 sale.  If you only have a few items that go over the threshhold, it would be simple enough to figure out the percentage, and add a tax rate for each individual item.  If you have a lot of items that go over the threshhold, this would be a bear of a workaround.

yeah, I had calculated that rate too but if the price changes or like if you said if there are lots of items each would have to be calculated per item.  But yes, it can work that way.  I wasn't thinking of making a rate for each item and that would work, I was thinking of how it wouldn't scale to different prices.  Thanks, That's a better way thank calculating it at the sale, let's hope they don't have a lot of items that need to be figured out.

We requsted for "clothing sales tax" more than a year ago and every couple monthes we call to support for solution. Square still does not have it. The recommended method will be screwed up if we add different discounts to the same item for different sales so we have to calculate sales tax manually and add it to the sale. In our store we use Square for POS and Shopify for online retail. Shopify found the work around for this case. We created collection "tax:clothing" where we added manually all items with the price over $175. I don't remember if we modified the source code. So right now if the customer buys the item from "tax:clothing" collection with final price less than $175 the sales tax has not be added to the sale. If more than $175 the sales tax applies on the difference.

Are you thinking that the discounts would effectively remove the tax?  I don't believe that's the case.  The discounts are taken before taxes.  The taxes would then, therefore, adjust for the discounted price of the item.

I may be a bit confused.  Are you charged a tax on an single item that exceeds $175, or any order that collectively adds up to more than $175?

Yes. We calculate a sale tax on a single item. Store has items without taxes, items with sale tax on the entire final price and items with tax on the the price over $175.

The short answer,unfortunately, is that there is currently no way within Square to start charging a sales tax above a certain price point.  See this discussion for more info plus a work around.