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A client has the following condition in which they need to be able to remove tax on specific products.

I've been unable to locate an extension that'll allow to me to set no tax rates on specific products and I'm aware of creating a discount and applying the setting "Apply Discount After Tax", however, that setting is a global configuration which will create a price discrepancy for any other on-going promotions in which sale tax is still applied.

**EDIT: These specific products are part of a promotion in which customers will get free tax and free shipping when using the appropriate promo code.

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Based on your description you would use the default functionality of Magento. Edit the product you don't want to apply tax to and set:

Tax Class to None
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  • Is there a way to apply this to a discount code? I forget to mention (will add now) that these products are part of a promotion in which the customers will get free shipping and tax if they use a promo code.
    – key_bearer
    Commented Dec 14, 2015 at 19:31
  • Out of the box Magento will allow you to set free shipping and/or reduce the cost of an item. Using a standard shopping cart price rule you cannot alter the tax rate of an item.
    – Eirik
    Commented Dec 14, 2015 at 19:36

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