We are required to collect both state and local sales tax in our jurisdiction. Our state tax rate is 4%, and we have entered our Sales Tax ID into Shopify. However, when reviewing our online store, we observe that only the local tax is being collected, not the state tax. Despite reaching out to Shopify’s chatbot and support advisors, we’ve received inconsistent responses and have not found a resolution. Could you please assist us in ensuring that both state and local taxes are collected correctly?"
Topic summary
A merchant is experiencing issues with Shopify’s tax collection system. They need to collect both state tax (4%) and local sales tax, and have entered their Sales Tax ID into Shopify.
Current Problem:
- Only local tax is being collected; state tax is not being applied
- Shopify support has provided inconsistent responses without resolving the issue
Community Response:
- One user reports similar ongoing tax problems for 4 months without resolution
- Another user with tax expertise is attempting to help by gathering more details about the state and product type
- The helper suspects this may involve product-specific tax exemptions (e.g., groceries in certain states like GA, where state exemptions exist but local taxes still apply)
Status: The issue remains unresolved and is under community troubleshooting.
Good Luck. I have had tax issues for 4 months now and they can’t seem to get it right
Hey, I know a decent amount about the Shopify Tax product as well as sales tax in the US in general. Can you tell me more about which state you are selling and what type of product you sell?
With a 4% rate I am guessing you are in AL, WY, NY, HI, or GA?
I am thinking that perhaps it could be a situation like selling grocery items in GA? They have exemptions at the state level but some localities still tax groceries. My guess is you might be running into a similar thing?