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Shopify tax calculation differs from TaxJar

Shopify tax calculation differs from TaxJar

pablojoy
Tourist
11 0 4

Hi! I have my shop integrated with TaxJar app but when I see the tax calculations made by Shopify and compare them with the numbers I get interacting with TaxJar api (for example: https://developers.taxjar.com/api/reference/?shell#post-calculate-sales-tax-for-an-order) I get complete different results for some addresses.

For example, for an order of $140.00 and address Pueblo CO 81008, Shopify calculates the following taxes:

  • Colorado State Tax (2.9%) - $4.06
  • Pueblo City Tax (3.7%) - $5.19
  • Colorado Retail Delivery Fee - $0.27
  • Total tax - $9.52
But when I check the taxes for the exact same address and price, I get a completely different number from TaxJar API:

 

"city_amount": 0.0,
"city_tax_rate": 0.0,
"city_taxable_amount": 0.0,
"combined_tax_rate": 0.039,
"county_amount": 1.4,
"county_tax_rate": 0.01,
"county_taxable_amount": 140.0,
"id": "1",
"special_district_amount": 0.0,
"special_district_taxable_amount": 0.0,
"special_tax_rate": 0.0,
"state_amount": 4.06,
"state_sales_tax_rate": 0.029,
"state_taxable_amount": 140.0,
"tax_collectable": 5.46,
"taxable_amount": 140.0​

 


So the only matching number being the "state_amount" of 4.06 that is the same number in shopify in  section Colorado State Tax (2.9%) but the Pueblo City Tax (3.7%) and the Colorado Retail Delivery Fee are not coming in the taxjar response.

What is causing this? How can I solve this inconsistency?


If someone can help me with this that would be great! Thanks in advance!

Reply 1 (1)

BradGrillRescue
Tourist
9 0 4

I still have this problem.  I noticed that on the orders that there is variances, the timeline on Shopify shows the fully taxed amount that TJ would have, but then it adjusts it lower for some reason.

Anyone get the solution to this yet?