Setting up Taxes
In this article :
- Introduction
- Set tax rate for country
- Set tax rates for sub-regions
- Set override tax rates for shipping
- Set override tax rates for selected product collections
- Tax settings
- 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 > Settings > Taxes > Add tax rate.
2.2 Select Country.
2.3 Enter Tax Name and Country Tax rate > Save.
2.4 Country tax rate is set up successfully. To proceed with steps 3-5 below, click pencil icon to edit.
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.
3.2 Tick the sub-regions that you need to set different tax rates > Save.
3.3 Set up tax rates for respective sub-regions > Save.
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.
4.2 Select Location and fill in the override Tax rate > Save.
4.3 You may continue to set up override shipping tax rate for other sub-regions, if any.
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.
5.2 Select Collection, Location and fill in the override Tax rate > Save.
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.
5.4 Select Location and fill in it's Tax rate for the same collection > Save.
5.5 You may continue to set up product override tax rate for other collections, if any.
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
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
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
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
Updated on: 06/11/2025
Thank you!