Online in Minnesota, no taxes show up for order in Texas

Highlighted
New Member
9 0 0

Hello All,

 

I would appreciate if anyone can be help me understand why, after setting up taxes to in Shopify to calculate automatically, with physical presence in Minnesota (where I am), why is customer order in Texas does not show taxes breakdown? 

 

Thank you

0 Likes
Highlighted
Shopify Staff
Shopify Staff
223 43 76

Hi @maych,

 

Dani here from Shopify. Thanks for reaching out!

 

When it comes to taxes, this is based on the states that you have tax nexus in. Since you have a physical presence in Minnesota you have nexus in this state and charge sales tax to your customers from Minnesota. By default, you're not set up to collect sales taxes for customers in states that you don't have nexus in. I'd suggest taking a look through our US tax guide for more information.

 

If you're unsure whether you qualify for tax nexus in Texas, I'd suggest reaching out to a local tax expert to ensure you're abiding by your local laws and regulations. For example, some states require you to collect sales tax once you pass a certain sales threshold in them. For Texas specifically, I did find this TaxJar article that outlines whether you qualify for nexus in Texas.

 

Please let me know if you have any further questions. I'd be happy to continue helping you.

 

All the best,

 

Dani

Dani | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution 

0 Likes