Configure tax classes

The tax class that is used for shipping, and the default tax classes for products and customers are set in the Sales configuration.

  1. On the Admin sidebar, go to Stores > Settings > Configuration.

  2. In the left panel, expand Sales and choose Tax.

  3. Expand Expansion selector the Tax Classes section.

    Configuration - tax classes

  4. Choose the tax class for each of the following:

    • Set Tax Class for Shipping
    • Tax Class for Gift Options
    • Default Tax Class for Product
    • Default Tax Class for Customer
  5. When complete, click Save Config.

Add tax classes

Tax classes for customers and products can be easily added, and then assigned to individual customers and products, and used in tax rules.

  1. On the Admin sidebar, go to Stores > Taxes > Tax Rules.

  2. Click Add New Tax Rule.

  3. Expand Expansion selector the Additional Settings section.

    Add New Tax Class

  4. Under Customer Tax Class, click Add New Tax Class.

  5. Enter the Name of the new tax class in the text box.

    Add New Tax Class

  6. To add the new class to the list of available customer tax classes, click the checkmark.

    New tax classes

Add a product tax class

  1. Under Product Tax Class, click Add New Tax Class.

  2. Enter the Name of the new tax class in the text box.

  3. To add the new class to the list of available product tax classes, click the checkmark.

  4. When complete, click Back in the button bar to return to the Tax Rules grid.

Default tax destination

The default tax destination settings determine the country, state, and ZIP or postal code that are used as the basis of tax calculations.

To configure the default tax destination for calculations:

  1. On the Admin sidebar, go to Stores > Settings > Configuration.

  2. In the left panel, expand Sales and choose Tax.

  3. Expand Expansion selector the Default Tax Destination Calculation section.

    Default Tax Destination Calculation

  4. Set Default Country to the country upon which tax calculations are based.

  5. Set Default State to the state or province that is used as the basis of tax calculations.

  6. Set Default Post Code to the ZIP or postal code that is used as the basis of local tax calculations.

  7. When complete, click Save Config.

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