Add tax rules
Add sales tax rates for the states, counties, cities and ZIP codes where you collect, with clothing and shipping rates.
A tax rule says where you collect sales tax and at what rate. Add one for each state you collect in, plus county, city or district rates where they apply. Owners and admins can add rules.
Add a rule
Go to Settings → Taxes. Under Tax rules, click Add rule.
Name it
Give it a Name, such as "Texas state tax".
Say where it applies
Under Where it applies, fill in the places the rule covers. Leave a place empty (Any) to match anywhere:
- Country
- State or province: "Texas" and "TX" both work.
- County: "Travis County" and "Travis" both work.
- City
- ZIP or postal codes: one or more, as exact codes (
78701), a prefix (787*) or a range (78701-78799).
Every place you fill in must match the ship-to address. Capitalization, accents and punctuation don't matter ("St Louis" matches "Saint Louis").
Enter the rates
- Rate (%): the rate, such as
6.25. - Clothing rate (%): if clothing has its own rate here, such as
0where clothing is exempt. Leave it on Same as the rate otherwise. - Taxes shipping: turn it on if shipping charges are taxed here.
Choose how it combines
Under How it combines, pick:
- Adds up: adds to the other rules that match (state + county + city + district), the way jurisdictions stack.
- Combined rate: the whole rate for the places it names, such as a ZIP code's combined rate. The most specific one that matches is used on its own.
New quotes and invoices shipping to a matching address are taxed with it. Existing ones change only when you update their tax.
Examples
| You sell in | Rules |
|---|---|
| Pennsylvania | One rule: state PA, rate 6, clothing rate 0, shipping not taxed |
| A city with local tax | Adds up rules: one for the state, one for the county, one for the city, and a district by ZIP prefix |
| A state with ZIP-code rates | Combined rate rules per ZIP code, best imported from a rate table |
These are examples of how to enter rules, not tax advice. Check current rates with your state.
Change or remove a rule
Click a rule to edit it. To stop using it but keep it on file, turn off Active. To remove it, click Delete.
Deleting a rule can't be undone. Quotes and invoices already taxed keep their tax.