Why is my sales tax rate always 7.25% on Shopify?

K_8
Excursionist
20 1 3

Hi - My shop is based out of San Francisco, CA. I noticed that when I ship to customers in any other cities (outside of SF), the tax rate that Shopify automatically charge is 7.25%. 

 

For example, I shipped a merchandise to Los Angeles and shopify charge 7.25% on tax (see pic), shouldn't the tax be higher since it's going to Los Angeles, which is 9.25%?? Isnt the tax charged based on the destination? In Quickbooks, it's calculating tax based on destination, not origin. Can someone explain please? Thank you!

Screenshot 2022-10-11 165053.jpg

 

Reply 1 (1)

K_8
Excursionist
20 1 3

Adding to my question above, this is from https://www.avalara.com/

 

In the case of California, if you are based in that state and make a sale to another location in California, any city, county or state taxes will be based on the seller’s location (origin), while any district sales taxes will be based on the customer’s location (destination).

 

So I am located in San Francisco - shipping to Los Angeles. SHouldnt I charge the state tax (7.25%) PLUS the district and local tax in Los Angeles (= 2.00%)?