#Taxes

Set up tax zones to automatically calculate and collect sales tax from customers based on their location.

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#How Taxes Work

1. You create tax zones (groups of states with a tax rate)
2. When a customer checks out, the system checks their state
3. If their state is in a tax zone, tax is added to their order

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#Tax Zones

#Viewing Your Zones

Go to Settings > Taxation to see all your tax zones.

Each zone shows:

• Zone name
• Tax rate
• States included
• Whether it's enabled

#Creating a Tax Zone

1. Go to Settings > Taxation
2. Click Add Zone
3. Enter a zone name (e.g., "Texas Sales Tax")
4. Enter the tax rate (e.g., 8.25%)
5. Select the states this rate applies to
6. Click Save

#Editing a Tax Zone

1. Click on a tax zone to open it
2. Update the name, rate, or states
3. Click Save

#Enabling/Disabling a Zone

You can turn zones on or off:

• Enabled - Tax is collected for orders to these states
• Disabled - No tax collected for these states

#Deleting a Zone

1. Open the tax zone
2. Click Delete
3. Confirm deletion

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#Understanding Tax Rates

#What Rate to Use

Tax rates vary by state and sometimes by county or city. Use the rate for your business location or where you have nexus.

Common considerations:

• Your state's sales tax rate
• Any local taxes that apply
• Special rates for certain products

Note: Consult with a tax professional for accurate rates. Tax laws are complex and vary by jurisdiction.

#Example Setup

Zone Name	Rate	States
Texas	8.25%	TX
Florida	6.00%	FL
No Tax States	0%	MT, NH, OR, DE, AK

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#Avalara Integration

If you use Avalara AvaTax for automated tax calculation, see the Avalara AvaTax integration guide for setup, tax code mapping, customer exemption handling, and refund/void behavior.

Avalara can:

• Automatically calculate accurate rates
• Handle complex multi-jurisdiction taxes
• Stay updated with tax law changes
• Validate addresses and capture lat/long
• Manage exemption certificates and entity / use codes

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#Tax Nexus Basics

You must collect sales tax in states where you have "nexus" (a tax obligation).

#When You Have Nexus

• States where you have a physical location
• States where you exceed sales thresholds (typically $100,000 or 200 transactions)

Important: Tax laws vary by state. Consult a tax professional to determine your specific obligations.

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#Common Questions

#Do I need to collect tax in every state?

Only in states where you have nexus. This typically includes your home state and states where you exceed certain sales thresholds.

#What about ammunition and firearms?

Tax laws for firearms and ammunition vary by state. Some states exempt certain items. Check with a tax professional for your specific situation.

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#Related Documentation

• Shipping - Configure shipping zones
• Checkout Settings - Configure checkout options
• Store Information - Business details