My orders containing clothing is getting taxed for my Minnesota customers but Minnesota doesn't charge tax on clothing. Any insight as to why shopify is charging taxes on clothing to Minnesota? I know they have the functionality to exclude clothing from tax by using tax:clothing which works for New York, Massachusetts, and Rhode Island (if memory works correctly)
Hi @ferd ,
Hyde here from Shopify, thanks for reaching out.
I would always first recommend that you consult a tax expert, to be clear on what's expected.
When it comes to US taxes, it depends on whether your business is based in an origin state or destination state. An origin state charges tax according to where you are shipping your products from.
A destination state charges tax according to where you are shipping to.
I would recommend reading this help document on the subject.
By reading the above you can determine what kind of state you're operating from and therefore determine whether taxes are being applied because you're shipping to another state, or because your customers are based in the same state as yourself.
However, if you still feel something is not quite right you can override taxes as you see fit, here's how.
All the best, Hyde.