Setting Up 2 Different Sales Tax for North Carolina

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North Carolina has 2% Sales Tax on Food and 7% for non-food products/merchandise. I can not figure out how to set the Tax Settings to charge the 2% for food. Charging customers the 7% for everything in their cart. 


Thank you!

Reply 1 (1)

Shopify Staff
1169 122 148

Hi, @organicdeb!


Thank you for your post, I'm happy to share some information here. 


Your two options to go about this are by creating a tax override or by using product categories. 


To set up a tax override, you can create a manual collection for the products that require a different tax rate (in your case, you'd create a collection with all your food items), and then apply the override to that collection (you would set the tax override for that collection at 2%). You can find the instructions for creating a manual collection here, and the steps for adding a tax override can be found here


Alternatively, if the feature is available to you, you can use product categories to indicate the tax obligations and exemptions that apply to certain products on your store. Please note that tax calculation that uses product categories is in early access and available only to certain stores. I recommend that you verify that your sales are calculated by using product categories before you deactivate any tax overrides on your store. You can read more about using product categories for tax calculation in this help document, and there is also information regarding the limitations of this feature, as well as how to test it on your store. 


I hope this information helps! Please let me know if you have any other questions. 

Greta | Shopify 
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