By default, Merchant Solutions and Store v.1 stores don't set a tax rate for shipping charges. Some states may require you to charge tax on the shipping charges or any handling adding to shipping charges as well the products. Consult a business tax advisor or get information from your state's tax department to determine what taxes you must collect from buyers. To locate your state tax department's website, go to the Federation of Tax Administrators.

Add tax to shipping charges

1. Sign in to your My Services page.

2. Click the Store link.

   

3. Go to Tax Rates. You should see the tax rules you've set up for your store.
   
4. Click the edit link to the right of the rule you need to change. For example, if you need to add tax for shipping charges when shipping to Texas, click the edit link for the Texas state rule.
   

5. In the Edit Tax Rule dialog:

   • Select the Percentage radio button.
   • Enter the tax rate in the Percentage of Shipping Amount field.
   • Click the Update button.

   
   The tax rule you edited will show + Shipping along with the tax rate.
   

6. Click the Done button.
   
7. Return to Store Manager and publish your Order Settings.
   

You can test your tax rates after publishing by clicking Shipping & Tax Test in the Store Manager. Learn more. 

Note: Turbify can't provide tax advice for determining your tax requirements based on your location(s) and products. Due to the financial and legal implications surrounding tax requirements, Turbify strongly recommends merchants consult a small business tax advisor for determining the exact tax rates applicable to your store.

See Also:

• Set up tax rates in Tax Wizard
• Set up tax rates in the Manage Taxes page
• Manage Taxes Overview
• Tax settings in checkout
• Edit tax rates
• Delete tax rate
• Filter tax rates
• Exclude products from taxation