You can create tax rules for the countries, states/provinces, and specific US Zip Codes where you ship products. This guide covers how to create tax rules for your Commerce store.
Note: Squarespace now supports tax-inclusive pricing and customizable invoices for collecting VAT and GST. For help setting this up, visit Collecting VAT or GST.
Note: This guide is available as a resource, but should not be construed or relied upon in any way as legal or accounting advice. Per our Terms of Service, Squarespace doesn't provide advice or recommendations on any laws or requirements applicable to your site or business. If you have questions about collecting taxes, you can consult with a tax advisor.
Before you begin
- You can use this helpful resource for checking US state sales laws.
- You can edit or remove a tax rule by clicking the rule in the Taxes panel. Removing a country tax rule removes all state and local tax rules that apply to it. Likewise, removing a state tax rule removes all local tax rules for the state.
- Taxes display during checkout once an address is entered.
- If a customer uses a discount, tax is calculated based on the discounted price.
Note: Tax is based on shipping address for physical products, and billing address for digital products and services.
Step 1 - Open the Taxes panel
In the Home Menu, click Settings, and then click Taxes.
Step 2 - Add country tax rates
Click Add Country.
Select a country from the Country drop-down menu, then type the Tax Name and sales tax rate for that country.
If the country you're shipping to requires that you charge tax on shipping, click Charge Tax on Shipping.
You can also charge tax on service products by checking Charge Tax on Services.
Add a tax rule for every country where you ship your products. Click Save to publish your changes.
Step 3 - Add state or province tax rules (United States and Canada)
If you're creating tax rules for the United States or Canada, hover over the country and click add state or add province.
Choose the State or Province from the drop-down menu, then enter the sales tax rate. Click Save.
Step 4 - Add local tax rules (United States)
If you've added rules for states, you can hover over the State and click add local.
Local tax rules can apply to a single Zip Code, or a range of Zip Codes within one state. This allows you to adhere to various tax laws within one area.
Single Zip Code
Click Single Zip Code to add a tax rule for a single Zip Code. Then, add the Zip Code, tax rate, and click Save.
Range of Zip Codes
To add tax rules for a region or range of Zip Codes, click Range of Zip Codes. Then, add the start and end Zip Codes and the tax rate for that region. Click Save.