Tax settings – enabling tax calculations for US zip codes

Hi there,

If you’ve enabled automated taxes using WooCommerce Services, the automated tax calculation depends on prices to be entered exclusive of tax. Prices will be shown excluding tax since tax is only calculated on the cart/checkout pages as a single tax line item

When you set automated taxes, that will override any entered rates, so the standard tax rates that are entered won’t have any effect.

Im sorry, not sure what you are advising me to do – so should I remove the added standard tax rates on the > Standard Rates > tab and thats all i need to do? Thank you!

Waiting on reply, thank you very much!! ??

Hey there again!

If you are using WooCommerce Services to add in automated taxes, you cannot change most of the settings, it’s automated.

The display options, rates, etc. That is all handled automatically for you.

It will override your entered rates to the ones from the TaxJar API.

Let us know if you’re still having issues.

So should I remove the added standard tax rates on the > Standard Rates > tab and thats all i need to do? Thank you!

Waiting on reply, thank you very much!! ??

No, removing the added tax rates on the Standard Rates tab will not result in tax rates being pulled automatically for all US zip codes.

Based on your description, it sounds like you have automated taxes set up through WooCommerce Services.

If that is the case, you will only see taxes charged automatically within the store’s tax nexus. For the United States, the nexus is the state where the shop base address is located. Automated taxes will pull tax rates in-state, but not for other states.

You have a couple of options to add taxes for the rest of the United States

1. Use TaxJar or WooCommerce AvaTax to add automatic tax rates for the rest of the United States OR
2. Manually add the tax rates for other states to the Standard Tax rate table as shown in our documentation here

Let us know if you have any questions on this!

Hi, Jess

Thanks for the reply. So my client is not shipping to states other then MD but outside states can order for delivery within MD. So how can customers only be charged MD taxes, regardless of origin of state of purchase? For instance, Delaware is a tax-free state, but when ordering should be charged MD taxes in order to place order.

Thank you!

Howard

Hi Howard,

Taxes are automatically charged based on the shipping address when you have automated taxes enabled.

Link to image: https://d.pr/i/rOvBgn

As long as they’re entering a shipping address within MD, the taxes should be calculated accordingly.

If you have any other questions about this, please do let us know!

Hi Howard,

I thought I’d also mention that if you always want to charge the same Maryland tax rates to all customers, automated taxes might not be the best fit for your store.

If you disable automated taxes, you can adjust your tax settings so that they calculate based on Shop Base Address:

Link to image: https://d.pr/i/yk3Liv

You can then enter the tax rate for your store manually in the Standard Tax table.

We haven’t heard back from you in a while, so I’m going to go ahead and mark this thread as resolved. If you have any other questions please feel free to start a new thread.