Setting up automatic sales tax rates in the US through TaxJar is straightforward. Here's how to implement it effectively:

Prerequisites

• You must be located in and selling within the United States
• You need a Squarespace Business, Commerce, Professional, or Premium plan
• TaxJar Professional Plan is required for Business plan users

Step 1: Connect TaxJar Extension

1. Open your Squarespace Extensions panel
2. Search for "TaxJar" and connect the extension
3. Create a TaxJar account or sign in to an existing one
4. Enter your business information in the Business profile
5. Complete the connection process in the Taxes panel

Step 2: Add Business Locations

1. In TaxJar, click "Add State Registrations"
2. Select states where you have nexus (business presence)
3. Enter required information for each state
4. Enable TaxJar's API for tax calculations
5. Save information for each state

Step 3: Configure Product Tax Categories (Optional)

• Add specific tax categories to products in Squarespace
• Products without categories use standard sales tax rates
• Only one tax category can be applied per product

How Tax Calculation Works

Taxes are calculated based on:

• Shipping address for physical products
• Billing address for digital/service products
• Taxation address for local pickup purchases

Important Limitations

• Can't add tax categories to member site subscriptions
• Unable to exempt specific customers from tax
• Can't create product-specific tax rules
• Subscription products maintain initial tax rates
• Only one Squarespace site per TaxJar account

Troubleshooting Common Issues

If taxes aren't being charged:

• Verify TaxJar shows as "Connected" in your Taxes panel
• Confirm you've added relevant state registrations
• Check if the order is within your registered states
• Ensure products aren't in exempt tax categories

To Disable Automatic Rates:

1. Open the Taxes panel
2. Click "Disconnect TaxJar"
3. Confirm disconnection

For international sales or locations outside the US, you'll need to set up manual tax rates separately.

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