Creating Sales Taxes

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New Member
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Good evening,

I am new to Shopify (MrsT5DollarBoutique). I have added United States to the website, but I am unable to add other cities (which may have different tax brackets) to my website. I am needing help with adding all states. Please advise. Thanking you in advance.

 

Sincerely,

 

Juanita L. Tobin

mrst5dollarboutique@gmail.com

(803) 477-2396

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Shopify Staff
Shopify Staff
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Hi, @Mrst5!

I'm Miles from the Social Care team at Shopify. Taxes can be super confusing, so thanks for reaching out to get some guidance. Whilst I won't be able to provide tax advice about what tax to charge, I can help you get everything set up in Shopify.

To set up your tax, you need to determine whether you should charge sales tax. If you're not sure, then consult with a US state tax authorities or a tax professional. If you need to charge sales tax in one or more US jurisdictions, then you need to contact each of the relevant agencies and register with them. The process varies depending on where your business is based and where you sell, and on the individual government requirements. For a summary of state tax rules, you can check out our US taxes reference guide.

  1. Go to Settings > Taxes.
  2. In the Tax regions section, beside United States, click Set up.
  3. In the Tax registrations section, click Add tax registration.
  4. Select a state in which you are registered.
  5. In Sales tax ID, enter your account number.
  6. Optional: If your business is located in a state where tax laws regarding shipping vary, then you can choose whether you want to charge tax on shipping.
    • Click Advanced options.
    • Under Shipping tax, choose whether you want to apply shipping tax.
  7. Click Add tax registration.
  8. Optional: Add more regions and account numbers by clicking Add tax registration.

Some states have laws that affect whether shipping is taxable. If you're registered to charge tax in California, Colorado, Florida, Illinois, Louisiana, Maine, or Maryland, then you can choose whether to charge taxes on shipping.

If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional or check out the guides for states named above linked in this guide.

You can create tax overrides for products where the default tax rates don't apply, or shipping rates for specific states.

There's a lot of information here, so I don't overwhelm you. But if you follow the steps and check out the guides I linked, you'll be able to ensure you are charging tax correctly. I'd strongly advise you to chat with US state tax authorities or a local tax professional if you do have questions.

Miles | Social Care @ Shopify 
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