Why isn't sales tax included in my test order total?

[fefecosmetics]

Hi,  During my test order I noticed the sales tax are not included in the total. Here's an example below. The product is $16 and the shipping is $4.95 which brings the total to $20.95. But the order states the taxes are included which is $0.80. Can someone please help me with this? Thanks

[Summer · Accepted solution]

Hey, @fefecosmetics!

It looks like the taxes have been set to be included in your product price. If you wish to charge taxes on top of the product price, you'll need to turn off the All prices include tax option in your Tax settings. You can follow the steps below to do this.

1. In your Shopify admin, go to Settings > Taxes and duties. 

   

    
2. Scroll down to Tax Calculations and uncheck All prices include tax. 

   

Great idea doing a test order! Are you about to launch your store? If you are, don't forget to take a look at our launch checklist before the big day so you can ensure your store is set up for success. You can see the checklist on this page.

[Summer · Accepted solution]

Hey, @fefecosmetics!

It looks like the taxes have been set to be included in your product price. If you wish to charge taxes on top of the product price, you'll need to turn off the All prices include tax option in your Tax settings. You can follow the steps below to do this.

1. In your Shopify admin, go to Settings > Taxes and duties. 

   

    
2. Scroll down to Tax Calculations and uncheck All prices include tax. 

   

Great idea doing a test order! Are you about to launch your store? If you are, don't forget to take a look at our launch checklist before the big day so you can ensure your store is set up for success. You can see the checklist on this page.

[fefecosmetics · Accepted solution]

Great, I did it and now I see the taxes included. Thanks for the checklist, we're launching in a week.

[fefecosmetics]

I was able to include the sales tax but when playing around with test orders again I noticed only VA customers were being charge a sales tax. The goods will be shipped from VA, but I want to know why customers in other states aren't being taxed? I thought everyone had to pay a sales tax.

[Summer]

Thanks for confirming that your initial concern was resolved, @fefecosmetics! I hope your launch went well and that you've already made sales. If you haven't yet, this blog post will help you come up with strategies to get your first order.

To understand how US taxes work and how tax is charged based on your location, you can go over this guide we have in our Help Center. While this can give you an idea of how tax is generally charged, please note merchants are responsible for consulting with local tax authorities or a tax professional to verify that customers are charged the correct tax rates and to ensure taxes are filed and remitted correctly. If the information in the guide is unclear or inapplicable, you may contact a tax expert for clarification.