did you ever get this fixed?? I am in the same boat… it’s been a month and nothing has been fixed.
Topic summary
Sales tax is being recalculated after checkout, removing or refunding local taxes (city/county) and reducing the customer charge, while Shopify fees are still assessed on the higher, pre-refund estimated tax. Issue appears tied to the new Shopify Tax rollout (reported starting early November; one POS-specific spike at 10 AM Dec 1).
Reported impacts by state:
- AZ, NM, KS, CO, SC, IA, CA, MO, FL. Examples include AZ city-only food tax refunded; CO sales tax updated/refunded; KS undercollection; CA wrong jurisdiction; POS-only undercollection for one merchant.
Likely causes vary by case:
- Shopify Tax using estimated tax at checkout, then “updating.”
- Use tax vs. sales tax mismatch based on fulfillment location (e.g., MO use tax excludes county/special districts, causing shortfalls).
- Product tax categories (e.g., FL “Digital Goods” are non-taxable, triggering refunds).
- Address-level local option taxes (IA) show Shopify’s rates can match state address lookups.
Workarounds/updates:
- Some merchants opted out to a different tax method and enabled correct tax locations, restoring prior behavior; others cannot due to requirements like Colorado Retail Delivery Fee (only supported by Shopify Tax).
- Multiple tickets opened; Shopify staff advise contacting support with order examples. Screenshots were provided.
Status: Ongoing; no platform-wide fix announced. Key unresolved issues: accurate local tax collection and fee calculations on post-checkout adjustments.
So what i’ve found: “in Iowa”
In iowa i found on the department of revenue website a sales tax look up by address.
If I put in an address it will tell me if that address is subject to 1% local option tax or not. 2 houses that are blocks from each other in the same county can have different tax rates. 1 house will get the 1% tax the other will not per my states website. This matches up with what Shopify is charging or not charging for local sales tax.
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This is happening in California. Shopify is calculating the wrong Jurisdiction. Shopify needs to fix this. Worked fine since 2018, now it’s failing.
Hi, everyone. If you are experiencing an issue with the tax calculations on your store, please contact us securely through the Shopify Help Center so we can investigate, and consult with our Technical Merchant Support team and our Tax team if necessary.
This is also happening to all of my orders in AZ. I sell only home prep food items that are only taxes at the city level. Shopify estimates the taxes high, charges then refunds the customer the difference, then charges me a fee on the entire estimated amount. So we are essentially paying shopify higher fees than they should be getting, and we are paying for the incorrectly calculated estimated sales tax.