Sales Tax Setup

The Sales tax settings page sets your tax rates, which item types each one applies to, and what gets taxed on an order.

Tax Rates

1. Go to Sales tax settings
2. Click Add tax rate
3. Enter:

• Name: A descriptive name (e.g., "State Sales Tax", "City Tax")
• Rate: The percentage, e.g. 6.25
• Item types: Tick the item types this rate applies to. Orders for those types are charged this rate by default

Each item type can have one rate. Ticking a type that already has another rate moves it to this one. Item types without a rate aren't taxed; the Tax rates card lists them. A new item type isn't taxed until you tick it on a rate.

A rate that's deactivated, or set to 0%, isn't added to new orders. Orders already taxed at it keep it.

Threshold-Based Tax Rates

For taxes that only apply above a set price (like Massachusetts, where clothing under $175 is tax-exempt):

1. Open the tax rate and turn on Only tax items over a set price
2. Set Applies above: the item price, plus any charges you tax under What gets taxed, counts toward this amount
3. Choose What is taxed once an item is over the threshold:
4. • Only the amount above the threshold
   • The whole price

Tax Exemptions

To leave tax off a particular order:

1. Create a rate at 0% and name it something like "Tax Exempt"
2. When creating or editing an order, choose this rate instead of the default

What Gets Taxed

• Charge tax on alteration prices, Charge tax on additional work and Charge tax on additional fees: Each is taxed at the same rate as the item it's for. Turn one off if that charge isn't taxed where you are
• Prices include tax: Customers pay exactly the price shown, with the tax already inside it. Usual in the UK, Europe and Australia. When off, tax is added on top of your prices
• Rental tax rate: Shown when rentals are on. The rate charged on rentals, in place of their item type's. Enter 0 to leave rentals untaxed

Checking Your Setup

The Sample order in the Check your setup card shows what an order would charge with your settings, including unsaved changes. Pick a rate, enter an item price, quantity, discount and any alterations, additional work or fees, and see the tax and total. Nothing is saved.

Updated on: 19/10/2026