When setting up taxes for your store, it can be confusing to figure out how the taxes work. Setting up automatic taxes will provide up-to-date standard tax rates across your store.

How automatic taxes work

In general, if your business has a physical presence in a state (also known as "nexus"), such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers residing in the same state you're based but not always in other states. As you might already know, tax rates normally vary depending on the customer location. Plus, state laws change from time to time and tax rates get updated.

When automatic tax rates are enabled:

• Shop automatically calculates tax rates depending on your state tax law, store, and customer location.
• Shop stays up to date on the tax law. Once tax laws are changed in your state, county, or even city government, your store will "know" the new rules and apply them at checkout. No actions required on your side.

Our automated taxing system pulls from taxjar.com. Once enabled, the automatic taxes will determine a precise tax rate at checkout depending on where you and your customer are located, to make sure you're collecting the right sales tax rate on every product sold.

Troubleshooting incorrectly-applied automatic taxes

If you feel the shop is not charging the appropriate tax for your customers, you should first confirm this with a tax professional. If  you confirm that the rates are incorrect, then you can submit a support request to support@marketing360.com. In your request, confirm the specific product in question, the delivery address, as well as the tax rate you expect to be seeing. Our team can submit a request to TaxJar to look into the issue further.