Shopify allows you to automatically collect sales tax based on your store’s location and the jurisdictions where you’re required to charge tax. You should only enable tax collection after you’ve registered with the state. Tax collection should begin from your effective state registration date, and only if you are selling taxable products in that jurisdiction.
If you're using Shopify Tax, it will automatically calculate the correct rates, and you can customize tax rules or apply exemptions for specific products or regions as needed.
Click "Settings"
2. Click "Taxes and duties"
3. Click "United States"
4. Click "Region"
5. Select a "Jurisdiction" from the dropdown box
6. Input the "Sales tax ID" field.
If a sales tax ID is not available at the time of enabling sales tax collection, please leave it blank.
7. Click "Collect sales tax"
Enable tax collection on your products
Turning on collection for a state isn’t enough on its own. Each product also needs to be set to charge tax, otherwise Shopify won’t add tax to it at checkout.
Go to Products and open a product.
In the Pricing section, tick “Charge tax on this product”. If the product has variants, check this on each variant.
Make sure the product has the correct Product category. Shopify Tax uses the category to apply the right rules in each state, for example lower rates or exemptions for clothing or digital products.
Click Save.
To update several products at once: in Products, select the products, click Bulk edit, and add the “Charge tax” column. Tick it for each product, then save.
Leave “Charge tax” ticked for every product you sell, including items that may be exempt in some states. Shopify Tax uses the product category to work out where each item is taxable, so unticking it would stop tax being charged everywhere.
Please ensure you turn on tax collection on your effective registration date.