Manual tax rates help you collect the right sales tax from customers in different locations. Your customer's address determines which tax rate applies - shipping address for physical products, billing address for digital items.

Adding National Tax Rates:

1. Open the Taxes panel
2. Click "Add Rate" or "+" if you have existing rates
3. Select country from dropdown
4. Enter tax name and rate
5. Enable options for digital products/shipping if needed
6. Save changes

Adding Canadian Provincial Rates:

1. Click "Add provincial rate"
2. Select province
3. Enter provincial tax rate
4. Configure optional settings
5. Click Add, then Save

Adding US Local Tax Rates:

For single zip code:

• Select "Zip code"
• Enter code and rate
• Save changes

For zip code range:

• Select "Zip code range"
• Enter start/end codes and rate
• Save changes

Important Tax Considerations:

• State and local taxes combine
• Digital products use billing address
• Memberships use payment method zip code
• Tax-inclusive pricing available (optional)
• Taxes calculate on discounted prices
• Donations and gift cards are tax-exempt

South Dakota v. Wayfair Impact:

The 2018 ruling means sellers may need to collect sales tax even without physical presence in a state. Consult a tax advisor to understand your obligations under current state laws.

Limitations:

• Cannot set product-specific rates (except US automatic rates)
• Cannot set city/region rates outside US/Canada
• Cannot exempt specific customers

Note: For US sellers, automatic tax calculations through TaxJar are recommended instead of manual setup.

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