> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://support.easystore.co/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Setting up Taxes

### In this article :

1. [Introduction](#1-1-introduction)
2. [Set tax rate for country](#1-2-set-tax-rate-for-country)
3. [Set tax rates for sub-regions](#1-3-set-tax-rates-for-sub-regions)
4. [Set override tax rates for shipping](#1-4-set-override-tax-rates-for-shipping)
5. [Set override tax rates for selected product collections](#1-5-set-override-tax-rates-for-selected-product-collections)
6. [Tax settings](#1-6-tax-settings)
7. [Tax calculations](#1-7-tax-calculations)

# 1. Introduction

Proper tax setup keeps your prices accurate and compliant with local regulations. This guide shows you how to configure tax rules, with options to set different rates for shipping or collections if needed based on local regulations.

# 2. Set tax rate for country

2.1 Go to your [EasyStore admin panel](https://admin.easystore.co/) > Settings > Taxes > **Add tax rate**.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_wnp6cj.png =800x365)

2.2 Select **Country**.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_low45.png =800x288)

2.3 Enter **Tax Name** and **Country Tax** rate > Save.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_egslot.png =800x395)

2.4 Country tax rate is set up successfully. To proceed with steps 3-5 below, click pencil icon to edit.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_z940eg.png =800x365)

# 3. Set tax rates for sub-regions

Except for country tax rate, you can set different tax rates for sub-regions.

3.1 Click on **Manage sub-regions**.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_1x7hknn.png =800x398)

3.2 Tick the sub-regions that you need to set different tax rates > Save.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_2d3beg.png =800x365)

3.3 Set up tax rates for respective sub-regions > Save.

| 💡Tips: Refer [step 7](#1-7-tax-calculations) below on how to choose Calculation.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_fowyyt.png =800x447)

# 4. Set override tax rates for shipping

You can set different tax rates for shipping.

4.1 Click on **Add override** near the Shipping overrides section.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_yt1xlr.png =800x265)

4.2 Select **Location** and fill in the override **Tax rate** > Save.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_zpyib2.png =800x329)

4.3 You may continue to set up override shipping tax rate for other sub-regions, if any.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_qqz6hp.png =800x175)

# 5. Set override tax rates for selected product collections

You can set different tax rates for selected products.

5.1 Click on **Add override** near the Product overrides section.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_ic2xxq.png =800x225)

5.2 Select **Collection**, **Location** and fill in the override **Tax rate** > Save.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_14r7rjh.png =800x321)

5.3 If you'd like to add override tax for **another sub-regions for the same collection**, click on the **3-dot** at the far right of the collection > **Add override**.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_e30xnk.png =800x171)

5.4 Select **Location** and fill in it's **Tax rate** for the same collection > Save.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_1kalezw.png =800x304)

5.5 You may continue to set up product override tax rate for other collections, if any.

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_ke441w.png =800x169)

# 6. Tax settings

###### Charge tax based on:

* Shipping address: Calculate tax based on where your products ship to
* Billing address: Calculate tax based on where your invoices bill to

###### Calculation (optional):

* Include tax in product price and shipping fee - Product price and shipping fee already include tax
* Shipping fees taxable - Shipping fee subject to tax

![](https://storage.crisp.chat/users/helpdesk/website/-/b/3/4/7/b34797d9594d3000/image_8zm8kd.png =800x378)

# 7. Tax calculations

###### Added to % federal tax

**Country Tax** = 6%, 
**Tax Rate** = 5 %, it will be 5 % + 6 % = 11 % 

__Calculation:__
Product price = $ 10.00
$10.00 * (6 % + 5 %) = $ 1.10
Total : $ 10 + $1.10 = $ 11.10 

![](https://storage.crisp.chat/users/helpdesk/website/b34797d9594d3000/image_1nsab6c.png =800x138)

###### Instead of % federal tax

* Charge the rate you set for the region instead of the country tax

**Country Tax** = 6 %, 
**Tax Rate** = 5 %, it will charge 5 % instead of 6 % for the particular region

__Calculation:__
Product price = $ 10.00
$10.00 * 5 % = $ 0.50
Total : $ 10 + $ 0.50 = $ 10.50 

![](https://storage.crisp.chat/users/helpdesk/website/b34797d9594d3000/image_lttpp2.png =800x68)

###### Compounded on top of % federal tax

* Add % on top of the country tax 

**Country Tax** = 6 %
**Tax Rate** = 5 %, it would charge 5% on top of the 6% tax amount

__Calculation:__
Product price = $ 10.00
$10.00 * 6 % = $ 0.60 
Add 5 % on top of 6 % : $ 0.60 * 5% = $ 0.03
Total : $ 10 + $ 0.60 + $ 0.03 = $ 10.63 

![](https://storage.crisp.chat/users/helpdesk/website/b34797d9594d3000/image_6prz7q.png =800x87)


