Automatic taxes

For users from the US, Canada, Australia, New Zealand and European Union Ecwid calculates the tax rates automatically based on the store and customer's location. On checkout the customer will be charged a proper tax rate according to country and regional tax rules.

If you sell products that are taxed differently (usually it concerns food & groceries, prescription drugs, supplements or alcohol, etc), you can set up taxes manually and specify what rates should apply to what products.

How to setup

1. Enter your actual company address in your Ecwid Control Panel → Settings → General page. This address is needed to calculate and apply the right rate to the order on the checkout.
2. Enable automatic taxes in your Ecwid Control Panel → Settings → Taxes page:


That's all!

Once enabled, the automatic tax rate will determine a precise tax rate at checkout depending on where you and your customer are located. The tool knows the tax rules in your country, state and even county and city and applies them properly to each order:

  • Whether you’re located in a region with origin-based or destination-based tax schema
  • Whether shipping cost or discounts are taxable
  • Whether you should charge tax in another state/country or not

The tax rate is calculated with a zip code accuracy. If your customer provides zip+4, it will be calculated with even higher precision. In some states (and the number of such states is growing), the tax is calculated with a street address level precision.

This feature is available on all Ecwid premium plans. Upgrade to get this feature
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