As of April 2020, the method for setting up US taxes has changed.
- If you're new to Shopify, then refer to Setting up US taxes.
- If you already use Shopify and need to update your settings, then refer to Registration-based taxes in the US. If you aren’t registered to collect sales tax in any states currently listed in your tax settings, then you can remove them.
- If you already use Shopify and don't yet have access to the new tax setup, then refer to Setting up US taxes - classic.
When you've determined where in United States you need to charge tax, you can set your Shopify store to automatically manage the tax rates you charge to your customers. You can set up tax overrides for products that have special tax rates.
Shopify helps to automate charging sales taxes, but Shopify doesn't remit or file your taxes for you. When you know where you're responsible for charging taxes, you can follow this guide to make sure that you've configured your Shopify store to charge the correct rates.
In the United States, the sales tax you should charge can be affected by several factors:
- The location your product is shipped from
- The location your product is shipped to
- Where you're registered to collect tax
- Item taxability
- Buyer exemptions
For most merchants, the most important considerations are where they're obliged to register to collect tax, and where they ship from and ship to. To learn more about tax registrations, refer to Nexus, and for more information on how your shipping affects your tax rates, refer to Tax sourcing.
If you need information about 1099-K forms and you use Shopify Payments, then refer to Tax reporting.