How to Configure Taxes?
Your site must be upgraded to an appropriate plan to use the automatic tax calculator.
- DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.
- The tax tools built into your online store help take the guesswork out of charging sales tax and make it simple to set up and manage tax rates. Customers in the United States can take advantage of the automatic tax calculator for US shipments. Canadian customers can use the pre-populated country and province taxes, and customers in other locations can manually add tax rates by country.
Automatically Calculate US Tax Rates
The first step is to make sure you’re set up for sales tax. You’ll want to check that any business addresses have been entered and that any non-taxable items have been marked as exempt. Learn more about using tax rates in your store in this article.
- Next, go to Settings > Taxes on your dashboard. If you’ve already added shipping rates, you’ll see those locations in the regions list. Click Set Up next to a region to add a tax rate, or use the Add Tax Rate button if you haven’t set up shipping rates.
- Click the checkbox to use the automatic tax calculator. You’ll then see rates for any states where you have a physical presence and need to collect sales tax. Click the View link to see the specific rates charged for each zip code in that state.
- Note: You must have a valid US address (store, shipping, etc.) in order to use the calculator. If this option is disabled, it may be because one or more of your addresses are not valid. You can edit addresses to correct them on the corresponding setup page. For the primary store address, go to Store > Setup > General. For the shipping address, go to Store > Setup > Shipping, and for the pickup address, it’s Store > Setup > Pickup. For each address, click the edit button to make changes, then save.