Variable Tax or Different Tax Levels

I searched the forum and could not find an answer. If there is please direct me to it.

In our install... we are required to charge tax on some products but others we do not have to charge tax. Is there a way to do this. Other than deducting the tax from the price and then having the system add it back in as then it is difficult to know at the end of the month how much tax we are supposed to pay.