Exclusive Tax means the tax is NOT included in the displayed price.
Inclusive Tax means the tax is included in the displayed price.
When you set-up tax rate, you can choose if the tax IS or IS NOT included in the price. This is for your reporting needs.
If you have tax rates on memberships or products in your area, you can choose to include them in your price so that members aren't charged extra for those taxes. You included these taxes in the membership or products price. The report will show how much tax you will pay on these memberships or products but the total paid price will reflect how much they paid.
If you want to charge the member the taxable amount, click 'No', and the members will be charged the tax rate on top of the price paid for membership or product. The report will show how much price of membership or product, tax paid on said membership or product, and total amount paid.
Click this link to the Tax Set-up FAQ page https://intercom.help/chalk-it-pro/en/articles/10023460-how-to-set-up-tax-rates