When creating a store, it is important to set appropriate tax rates for your customers.
Create a New Tax Rate
For example you need to create 5% tax for California. In this case, you need to perform the following steps:
- Go to the Store Control Panel.
- Go to the System Settings → Zones page. Click the New Zone button.
- Change the name of the created destination zone. Then click Add state... and add the necessary state (for example, "United States: California"). Save the changes.
- Go to the System Settings → Taxes page.
- Click the New Tax button.
- Enter your tax name and define the other settings.
- Click on the New Rate button. Select the zone created earlier and enter the tax rate (for example, 5%). Save the changes.
If you have many destination zones, repeat step #7 for each of them.
There is also a pre-defined zone named "Other zones" that defines tax for locations matching no zone mentioned in the rate list.