Incorrect Tax Calculations – Ohio

  • Resolved lostbill

    (@lostbill)


    4 years, 9 months ago

    I am finishing the setup of a new WooCommerce site and am using automated tax calculations via WooCommerce Services. However, I’ve noticed that all the in-state tax rates are being calculated based upon my shop’s physical location of 6.75%.

    I’ve setup test orders for Cincinnati (7%), Columbus (7.5%) and Cleveland (8%) but all come back with the 6.75% rate for my location. I have the system configured to “Calculate tax based on customer shipping address” and I have confirmed that out-of-state calculations appear to be correctly set to $0.00. I have read the short documentation provided by WooCommerce and everything appears to be set correctly. TaxJar returns the correct rates when I do lookups on their site directly.

    Is there an issue with calculating tax rates in Ohio? Or am I making some mistake on my end? I certainly don’t want to roll this out and be undercharging for sales tax!

Viewing 2 replies - 1 through 2 (of 2 total)
  • Thread Starter lostbill

    (@lostbill)

    To add some more information… I am using the Astra theme, but the behavior persists when I switch to the Storefront theme (latest version), clear out any populated shipping rates in the table (under Settings > Tax > Standard Rates).

    Additionally all of the rates that appear under the Standard Rates table show 6.75%. In my testing I’m trying the following zip codes: 45202 (Cincinnati), 44102 (Cleveland), 43202 (Columbus).

    Plugin Support Yuki K a11n.

    (@yukikatayama)

    Automattic Happiness Engineer

    Hi @lostbill,

    I am no tax expert, but based on TaxJar’s documentation on Ohio sales tax, Ohio is an origin-based sales tax state. Meaning that the tax rate you charge to anyone shipping to anywhere in Ohio will be the the same rate as your nexus (business location). So if you are in, say, Dayton which is at 6.75%, all customers shipping to Ohio will get the same 6.75% tax rate.

    Hope that clarifies things!

Viewing 2 replies - 1 through 2 (of 2 total)
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