How do I set tax rates for US to calculate automatically?

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Hi there,


I'm having trouble setting up sales tax for the US automatically. I'm referencing this link which shows how to do it 


I've set the store up so that the store address is in the US.


In the link above it says in Settings/Taxes scroll down to Tax Rates, but I don't have Tax Rates as an option to select the United States from and then assign 'Calculate taxes automatically' to it as shown in their example. I have Tax Regions with the US showing as 'Not collecting'.




When I select Edit for the US I get the following which shows 'Tax rates are calculated and applied automatically.




So do I need to do anything or is this actually working already? I suspect it's not as the US region is showing as 'Not collecting', so I'm a bit bit confused as to what's going on here.

I also suspect that it's not an automatic process but I actually have to go through all the states and assign the Sales Tax ID, is this correct?


The store is dealing with Digital Products so there will be no shipping involved.


If anybody can help me make sense of this and get it working that would be greatly appreciated.