This is required to ensure each of your products are categorized correctly. Shopify Tax uses these categories to determine:

1. Click "Products"

2. Select a product. In this example we select "Chino - Brown"

3. In the section Product organization you can assign a 'product category' to a product. Shopify usually assigns a default product category but it is worth ensuring that it is correct.

Additionally, shopify will usually go for a top level category where as you could select a more precise category as we demonstrate below.

Note: This can be completed in bulk as we explain later in the guide

4. Click the "Product category" field.

5. Use "Product category" field to navigate to the relevant category.

6. In this case "Apparel & Accessories"

7. In this case select "Clothing"

8. In this case select "Pants"

9. Once you've selected the correct category click "Save"

NOTE: This needs to be completed for all products in your store and for any new products you add. As we show below this can be completed in bulk and can even be done through a csv upload as per this guide from Shopify https://help.shopify.com/en/manual/taxes/shopify-tax/product-categories-tax