Tax Rates
Go to the System → Localization → edit Tax Class → Tax rates
Tax Rates can be added only within some Tax Class.
When specifying the tax rate, you will see the following screen
Location | select specific Location (New Location can be added in the System → Localization → Locations) |
|---|---|
Location's zone | If this rate will only apply to a specific state (or other Location's Zone designation) uncheck 'all location zones' and then locate the state (or Location Zone). |
Description | Description of the Tax Rate. You can define this as anything you like. |
Tax Rate | Tax rate can be set to either PERCENTAGE or ABSOLUTE AMOUNT in store's default currency. You can designate this under the drop-down menu. |
Tax Apply Condition | Apply this tax only if, a taxed amount (product, shipping, subtotal, etc.) corresponds to the condition. |
Exempt Groups | Select Customer's Groups to exempt this rate. |
Priority | Set the priority of the tax rate. This will determine which tax rate will be used if tax rate location overlaps other. |
Test Taxes
Be sure to make test purchases with a fake customer account from each Location to be sure tax is set up correctly! Add a product to cart, and try to change the delivery address to a different state or country.