Store administrators can use these recommended settings for most tax configurations for stores within the United States.
Tax Classes
TAX CLASS |
RECOMMENDED SETTING |
Tax Class for Shipping |
None |
Calculation Settings
CALCULATION |
RECOMMENDED SETTING |
Tax Calculation Method Based On |
Total |
Tax Calculation Based On |
Shipping Origin |
Catalog Prices |
Excluding Tax |
Shipping Prices |
Excluding Tax |
Apply Customer Tax |
After Discount |
Apply Discount on Prices |
Excluding Tax |
Default Tax Destination Calculation
SETTING |
RECOMMENDED SETTING |
Default Country |
United States |
Default State |
State where business is located. |
Default Post Code |
The postal code that is used in your tax zones. |
Price Display Settings
SETTING |
RECOMMENDED SETTING |
Display Product Prices in Catalog |
Excluding Tax |
Display Shipping Prices |
Excluding Tax |
Shopping Cart Display Settings
SETTING |
RECOMMENDED SETTING |
Display Prices |
Excluding Tax |
Display Subtotal |
Excluding Tax |
Display Shipping Amount |
Excluding Tax |
Display Gift Wrapping Prices |
Excluding Tax |
Display Printed Card Prices |
Excluding Tax |
Include Tax in Grand Total |
Yes |
Display Full Tax Summary |
Yes |
Display Zero Tax Subtotal |
Yes |
Orders, Invoices, Credit Memos, Display Settings
SETTING |
RECOMMENDED SETTING |
Display Prices |
Excluding Tax |
Display Subtotal |
Excluding Tax |
Display Shipping Amount |
Excluding Tax |
Include Tax in Grand Total |
Yes |
Display Full Tax Summary |
Yes |
Display Zero Tax Subtotal |
Yes |
Fixed Product Taxes
SETTING |
RECOMMENDED SETTING |
Enable FPT |
No, except in California. |