Hi- A few questions regarding the set up of Sales Tax in Shopify. We are in a destination state, so we need to tax various rates based off of where we are shipping to. I have set up my state in the tax set up. Does Shopify have the various rates within each state already loaded into the system to c…

Hi @2SAAB , Thank you for getting in touch. If you have a tax nexus in a state that uses destination-based tax system, Shopify will automatically calculate and charge the customer the appropriate tax amount based on the shipping address provided. Shopify has an internal tax database that is used fo…

Hi I’m going through the same thing. Would you have a video recording I could watch as reference? thank you!

Hi @jessnava , Thanks for getting in touch. Can you tell me a bit more about your situation, and for which states you need to enable taxes for? I’d be happy to offer some more tailored advice if you can provide me with more information about your store and your tax obligations. I’d also recommend c…

Hi Victor, i think I figured it out. I thought I needed to collect taxes in every state but turns out I only need to collect for my state now as I don’t have nexus in other states. Still learning about nexus.

Hi @jessnava , Yes, that sounds correct, as you likely will only need to collect taxes in states where you have a tax nexus . This includes having a physical nexus in a state (such as an office or warehouse) or an economic one (such as making a certain amount of revenue from orders made to customers…

Hi @jessnava , My pleasure! Please let me know if you have further questions about this, and have a great end to your week. Kind regards, Victor | Shopify Social Care

I am having an issue with my images. When they are uploaded to my store they become dull and not as bright as I edit them. Do you know if this can be fixed? Is it a setting?

Hi @jessnava , This can happen when the images are displayed on your storefront via your theme, which may compress images to ensure faster loading times on your site. You can read more about compression rates here , which provides guidelines on which image types are the best to use and how your imag…

Hello Victor, Thanks for sharing that. Btw how frequently is this tax database updated? And how are these tax rates calculated? Just want to understand how it works behind the scenes

@Victor_5 Does anything get retroactively adjusted? How long does it take for a rate change to be processed?

How does sales tax calculation work in destination states on Shopify?

Accounting & Taxes

jessnava March 17, 2021, 9:35pm 7

Thank you so much! This made me feel better!

Topic		Replies	Views
Shopify charging sales tax for origin and shipping address Accounting & Taxes taxes	7	213	September 5, 2024
Why is my sales tax rate always 7.25% on Shopify? Accounting & Taxes	1	53	October 12, 2022
How is California's local rate sales tax affecting your online store? Accounting & Taxes taxes	7	157	February 19, 2025
Sales tax overcharge Accounting & Taxes taxes	7	189	January 12, 2025
How can I correctly calculate California county tax rates on Shopify? Shopify Discussion	10	191	April 12, 2022

How does sales tax calculation work in destination states on Shopify?

Related topics