How to Automatically Calculate Sales Tax Based on Location

With Stack, you can effortlessly calculate sales tax for your customers based on their location and the type of product they purchase. This feature is available for all payments made through order forms, including membership courses, online stores, invoices, and payment links.

How It Works

The sales tax is dynamically calculated using the customer’s state and zip code, along with the product category. To ensure accurate tax calculations, make sure to enable address collection during checkout. If you’re processing payments via invoices, having a saved address in the contact details is essential.

Important Considerations

• US Sales: Automatic tax calculation is available for sales within the United States.
• International Sales: For other countries, you can manually set tax rates and attach them directly to products, which will be added to the subtotal at checkout.

Setting Up Automatic Tax Calculation

To enable automatic tax calculation in Stack:

1. Navigate to Payments.
2. Go to Settings and select Taxes.
3. Use the toggle to enable automatic tax calculation.

Configuring Tax Settings

• Nexus Addresses: Choose the states where you want to collect taxes.
• Default Product Tax Category: Set a default tax category for all your products. This will apply unless a specific category is defined for a product.

Customizing Product Tax Categories

If you need to define specific tax categories for individual products:

1. Go to Payments.
2. Select Products.
3. Create or edit a product to assign a specific tax category different from the default.

Tax Application

Taxes are applicable to both one-time and recurring products. You can view a detailed breakdown of the taxes on the order details and transaction details pages.

By following these steps, you can ensure that your sales tax is accurately calculated and applied, providing a seamless experience for your customers.