Setting Up Sales Tax on Shopify

Below are the steps for setting your store up for Shopify sales tax. These are:

From the Shopify admin, go to Settings > General and enter your correct physical store address. Make sure your store address is correct so that local and remote sales tax are applied correctly.

To add shipping zones from your Shopify admin, click Settings > Shipping. Under the shipping zones section, click Add shipping zone, and then give the zone a name and select the regions you want in that zone. Once finished, click Done.

You must select the different regions that you ship to. Since different states have different tax rules, you want to create a shipping zone for each jurisdiction.

To set up tax rates, go to Settings > Taxes

In the Taxes dashboard, you will want to set the tax rate for the shipping location you added in earlier.

Click the country and you’ll see the ‘Edit Tax Rates’ popup.

You can set the tax rate region wise.

Select whether taxes are included in your prices and if you want to apply taxes to your shipping rates.

There may be instances where you want to calculate sales tax manually or add an override. For example, if you sell items that are exempt from tax or have a presence in states with different shipping tax rules.

To add the tax exemption go to Settings > Taxes > Country > Tax overrides and choose the collection or location from the drop-down menu and add the relevant location and rate.

Do you want customization than Shopify’s in-built tax features or this private app hosted on our server? Contact Us.