How do I set up sales tax?
Choose the states you collect sales tax in and the rate for each, or let Stripe Tax work it out from the address.
For stores in the US
Step by step
- Open Settings, then Tax settings, and find the Sales tax panel. Changes save by themselves.
- Under How sales tax is calculated choose My rates per state, Stripe Tax, or Off.
- Pick your Home state. You always have nexus there.
- Under Add a state, add each other state where you are registered to collect. The rate fills in with the state’s base rate.
- Check each row under States you collect in. If your county or city adds tax, type your combined rate. Tick Tax shipping too where delivery is taxable.
- For an item your state doesn’t tax, open the product and untick Charge sales tax.
Prices in your store are shown before tax. At checkout, sales tax is added for the state the order ships to, and only in states you added. Everywhere else the tax is 0.
Which states to add
You collect where your business has nexus: your home state, and states where you passed their sales threshold, usually $100,000 a year (it varies by state). Register for a sales tax permit in a state before you add it. A new US store starts with its home state at the state’s base rate.
My rates or Stripe Tax
With My rates per state, each state has one fixed rate. With Stripe Tax, Stripe calculates the tax from the shopper’s full address, local taxes included, for card payments through Stripe. It collects only in states that are listed in Waise and registered in your Stripe account, and Stripe charges a small fee on each transaction it calculates tax for. Orders paid by PayPal, manual payment or crypto don’t pass through Stripe, so the rates you typed are used for them.
Note Tax you collect is owed to the state. Waise doesn’t count it as revenue, and it doesn’t file or pay it for you. Remit it on each state’s filing schedule. Ask your accountant which states and rates apply to you.
Tip Sales tax settings are open on every plan.
Questions
Where do I see the tax I collected?
On the finance screens, which show Sales tax collected as money owed to the states rather than revenue. The profit figures subtract it.
Does this apply to an Israeli store?
No. An Israeli store prices include VAT and uses the VAT settings in the same Tax settings screen. This article is about US sales tax.
Updated