Tax/VAT Settings
Configure tax rates by state and ZIP code, set a default tax percentage, and optionally integrate with TaxJar for automated tax calculation.
Tax/VAT Settings lets you define tax rates that are applied to orders during checkout. You can create location-specific rates by state and ZIP code for US/Canadian sales, or a flat VAT rate for international orders. A default tax rate serves as the fallback when no location-specific rate matches the customer's address. For stores that need automated, address-level tax calculation, a TaxJar integration is available as an alternative to manual rates.
Tax rates can be managed individually or bulk imported/exported via Excel spreadsheets.
View Tax Rates
Navigate to Pricing > Tax/VAT Settings in the admin sidebar. The page displays the default tax rate field at the top, followed by a paginated grid of all configured tax rates.
Default Tax Rate
| Field | Description |
|---|---|
| Default Tax/VAT Percentage | The fallback tax rate applied when no location-specific rate matches the customer's shipping address. Enter a decimal value (e.g., 6.25 for 6.25%). Click Update to save. This rate is also used as the included tax rate when the store is configured for tax-inclusive pricing. |
Tax Rates Grid
| Column | Description |
|---|---|
| Description | A label identifying the tax rate (e.g., "New York State Tax"). |
| State | The US state or Canadian province code this rate applies to. Empty for VAT rates that apply regardless of location. |
| Zip Code | A specific ZIP code within the state. When set, this rate takes priority over a state-only rate for customers in that ZIP code. |
| Tax Rate | The tax percentage (displayed with a % suffix). |
| Include Shipping | Checkbox. When checked, the tax rate is applied to the shipping total in addition to the order subtotal. |
| Include Discounts | Checkbox. When checked, the tax rate is applied to the discounted total (after promotions) rather than the pre-discount subtotal. |
| Action | Edit or Delete the tax rate. |
The three-dot menu provides Export (download all rates as an Excel file) and Import (bulk upload rates from a spreadsheet).
Add or Edit a Tax Rate
Click Add Tax Rate to create a new rate, or click Edit on an existing row.
| Field | Description |
|---|---|
| Description | A label for this tax rate. Used for identification in the admin grid only; not shown to customers. |
| State | Select a US state, Canadian province, or "None" for a VAT rate that applies to all locations. The dropdown includes all US states and Canadian provinces. |
| Zip code | An optional ZIP code to narrow the rate to a specific area within the selected state. When both state and ZIP code are set, this rate takes priority over a state-only rate. |
| Tax Rate | The tax percentage to apply (e.g., 8.875 for 8.875%). |
| Include Shipping | Checkbox. When checked, the shipping cost is included in the taxable amount. |
| Include Discounts | Checkbox. When checked, promotion discounts are factored into the taxable amount. |
Click Save to create or update the rate. Click Cancel to return to the list.
Import Tax Rates
Click the three-dot menu and select Import to open the import dialog. Upload an Excel file (.xlsx format) containing your tax rates.
Warning: Importing tax rates will remove all existing tax rates for the current store. Make sure your spreadsheet includes any rates you want to keep.
A Download template link is available in the import dialog to export the current rates as a starting point.
TaxJar Integration
For automated tax calculation based on customer address, you can connect a TaxJar account. Navigate to Partner Integrations > TaxJar in the admin sidebar.
Configuration
| Field | Description |
|---|---|
| API keys | Your TaxJar API key. Enter the key and click Save to enable automatic tax calculation for this store. When a TaxJar API key is configured, the checkout uses TaxJar's API to calculate tax based on the customer's exact shipping address instead of using manual tax rate rules. |
Transaction History
When TaxJar is configured, the page displays a filterable grid of transactions synced with TaxJar.
| Column | Description |
|---|---|
| Date | The transaction date. |
| Description | Line item descriptions from the order. |
| Location | The state where the order was shipped. |
| Amount | The order subtotal. |
| Tax Collected | The sales tax amount calculated by TaxJar. |
| Total | The total including tax. |
Use the date range filter and Filter button to narrow results. Click Export CSV to download the filtered transactions.
Tax Calculation Priority
At checkout, the storefront determines the tax rate using the following priority:
- Tax-inclusive pricing — If the store's "All Prices Include Tax" flag is enabled, tax is already included in product prices and a 0% additional rate is applied.
- Tax-exempt customer — If the customer account is flagged as tax-exempt, a 0% rate is returned.
- TaxJar — If a TaxJar API key is configured, the TaxJar API calculates tax based on the exact shipping address.
- State + ZIP code rate — If a tax rate matches both the customer's state and ZIP code, that rate is used.
- State-only rate — If a tax rate matches the customer's state (with no ZIP code restriction), that rate is used.
- VAT rate — If a tax rate exists with no state specified, it applies as a general VAT rate.
- Default tax rate — If no other rate matches, the Default Tax/VAT Percentage is applied.
Associations
Print Store
| Area | Effect |
|---|---|
| Checkout tax calculation | The checkout page calls GetTaxRate() which queries the TaxRates table by the customer's shipping state and ZIP code, falling back to the default rate. The resulting tax amount is stored in the checkout session state and displayed in the order summary. |
| TaxJar checkout | When a TaxJar API key is configured, the checkout calls TaxJarHelper.CalculateTaxForOrder() which sends the subtotal, shipping cost, and shipping address to TaxJar's API for precise tax calculation. This overrides manual tax rate lookups. |
| TaxJar order reporting | After an order is placed, TaxJarHelper.CreateTransactionForOrder() sends the completed order to TaxJar for compliance reporting and filing. |
| Tax-inclusive pricing | When the store's allPricesIncludeTax flag is enabled, product prices already include tax. The order records TaxIncludedInPrices = true and IncludedTaxRate (the default rate) for reference, but no additional tax is added at checkout. |
| Order records | The calculated tax is saved to the order's taxTotal field. The grand total is computed as SubTotal + ShippingTotal + TaxTotal - PromotionTotal. |
| Include Shipping / Discounts | When a matching tax rate has Include Shipping checked, the shipping cost is added to the taxable amount. When Include Discounts is checked, promotion discounts are factored into the taxable base. |
Related Pages
- Checkout Settings — overview of all checkout configuration options
- Promotion Codes — promotions interact with tax when "Include Discounts" is enabled
- Country List — controls which countries customers can ship to for tax calculation
- Orders — view the calculated tax amounts on completed orders