Choose a tax service
When setting up your taxes for the United States, you can choose the tax service that works best for your business. You can select Shopify Tax, Basic Tax, or manual tax settings to calculate and collect taxes from your customers at checkout. You can change which tax service you use at any time.
As of January 15, 2023, only Shopify Tax is updated with new features. The Basic Tax and Manual Tax services continue to work and receive tax rate updates, but do not receive new features.
Review the following table to determine which tax service is best for your needs.
Shopify Tax | Basic Tax | Manual Tax | |
---|---|---|---|
Sales tax calculation | |||
Automatic rate calculations using tax registrations | ✔ | ✔ | ✘ |
Automatic rate calculations using product categories | ✔ | ✘ | ✘ |
Automatic recommendations for product category | ✔ | ✘ | ✘ |
Rooftop accuracy | ✔ | ✘ | ✘ |
Support for state fees | ✔ | ✘ | ✘ |
Tax holidays | ✔ | ✘ | ✘ |
Managed Markets | ✔ | ✔ | ✘ |
Reporting and insights | |||
Tax reports | ✔ | ✔ | ✔ |
Tax liability insights | ✔ | ✘ | ✘ |
Advanced reports | ✔ | ✘ | ✘ |
Exemptions and overrides | |||
B2B tax exemptions | ✔ | ✔ | ✘ |
Customer tax exemptions | ✔ | ✔ | ✘ |
Manual tax rate overrides | ✔ | ✔ |