How to set up tax effectively on Shopify admin?

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Hello there, I just switch to Shopify this year from another platform, my question is what's the best way to set up tax on Shopify admin, or does tax automatically apply by Shopify?

Replies 2 (2)

Shopify Staff
1331 319 228

Hey, @Yourstylesite! Welcome to Shopify Community!


I'm glad to learn you decided to migrate to our platform. I can imagine that the process of setting up your store can be daunting, considering you're new to Shopify. To help you get set up and launch your store in no time, do feel free to refer to our general setup checklist. If you need additional help, you can always reach out to us too.


Now, let's talk about your concern. While common sales tax calculations are automatically handled by our platform, you can also set up tax overrides to address unique tax laws and situations. To answer your question, the best way to set up tax depends on how you need to charge tax. If you're unfamiliar with how you should charge tax on your sales, you may reach out to a tax expert for advice.


Once you have determined how to charge tax, you can refer to the appropriate guide listed on this page. The tax setup varies per location, so I suggest referring to the one that is relevant to your region. We also have the guide on setting up tax overrides on that page should you need to do this.


If you have additional questions or concerns about taxes, don't hesitate to respond to this post and I'll help you further!

Summer | Social Care @ Shopify 
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Shopify Partner
40 1 9

Hello @Yourstylesite ,


Welcome to Shopify! For your question, taxes are not automatically applied to your products. You need to set up taxes in your Shopify admin before they can be applied to your orders.

  • To set up taxes on Shopify, follow these steps:
  • Go to Shopify Admin -> Settings -> Click Taxes
  • Enable taxes by clicking on the "Collect tax" checkbox.
  • Choose your tax settings, such as whether you want to apply taxes to shipping and handling, and whether you want to round taxes.
  • Set up your tax rates by clicking on "Manage rates" -> "Add a tax rate".
  • Enter the tax rate details, such as the name of the tax rate, the country or region where it applies, and the percentage rate.
  • Save and preview


Hope these can help, let me know if you have any further questions.




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