Tax setup
Configure tax rates by region.
Overview
Configure tax collection for your store based on your business location and tax obligations.
Tax configuration
Go to Settings → Store to configure tax settings:
- Set your business address (determines your nexus)
- Configure tax rate for your jurisdiction
- Choose whether prices are tax-inclusive or tax-exclusive
- Enable automatic tax calculation for shipping
Understanding nexus
"Nexus" means you have a tax collection obligation in a jurisdiction. This is typically where you have a physical presence (office, store, warehouse) or where you exceed economic thresholds (usually $100K in sales).
Warning
Tax requirements vary by state and country. Consult a tax professional to determine where you have nexus and what rates to charge.