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New Member
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Has anyone had any luck with the tax platform in Shopify?  We would love to open our business but can't because taxes are not calculating properly.  I have my Alabama ID set up under the tax region.  The only time it calculates taxes for local county and city is if I complete a sale in my city.  Currently it has the tax for city labeled incorrectly in the tax calculation when I create a test sale to my address.  I am in the jurisdiction for my neighboring city and it labels the city tax for my city and not the neighboring city.  My city does not have a city tax.  If I create a test sale to someone outside of the jurisdiction of the neighboring city but in my city, it still pulls the neighboring city 1.5% sales tax.  I also have a county ID for taxes but see no place to put that ID in and if I sell to someone in my County with a different city name it does not calculate the county tax at all.  Alabama is a destination state and is also defined as a home rule state and I need to be able to collect taxes based on where I am shipping to.  We are not a brick and mortar Store, everything is website sales.  Has anyone found a work around solution? 

What about collecting out of state taxes?  Most are threshold driven by quantity or dollar amount.  How are you managing this process?


Replies 2 (2)
Shopify Staff
Shopify Staff
4531 434 1023

Hi @rcbooth,

Nick here from Shopify. Good question, taxes can be difficult to navigate even on the best of days!

Without seeing your tax settings in your admin it's hard to determine what exactly might be going on for your store. Shopify does have an in-depth tax guide going through all the steps to set up taxes for stores based in the USA. Did you see it before? If not, you can find it here and it might help you set up the taxes correctly so you are charging the correct amounts of for out of state/county sales. 

I would also advise setting up an appointment with a professional tax consultant to make sure you are charging the right taxes for your business. We can't offer tax advice in that sense, more guide you on how to set up your taxes correctly. 

If you do need more assistance with getting your taxes set up in the settings of your admin, while we’re not able to provide account-specific support via the Shopify Community at this time, we’d be happy to continue assisting you through live chat, email, or callback. Please visit our support team here and log in to your account to create a support request. Once you are talking to a support advisor and verified your account they can assist you with this. 

Thanks, Nick

Nick | Community Moderator @Shopify
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New Member
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As an Alabama seller, we have been having problems with this for years to no avail. I'm loosing to much money and may need to shut down my website because Shopify hasn't provided a solution yet.