How to set up a tax group
Set up a tax group in the Merchant Hub — group one or more tax rates, optionally compound them or set per-outlet rates, then assign the group to products.
What is a tax group?
A tax group combines one or more tax rates that should be applied together. You assign a tax group to each product, and the system calculates the tax at checkout. Tax groups let you match the rates you're required to charge — for example a state or provincial sales tax, or a combined federal-plus-regional tax — and apply them consistently across your catalog and outlets.
How to set up a tax group
In the Merchant Hub, go to Settings → Taxes.
Choose Add Tax Group, give it a Name (for example, Standard Tax or Reduced Rate), and create it.
Choose Add Tax Rate and enter a Name (for example, State Sales Tax or VAT) and the Rate (%) (for example, 10.25). Add each rate that should apply together.
Compounding (optional): turn on Compound for a rate so it's applied on top of the other (non-compounding) rates — i.e. tax on tax.
Per-outlet rates (optional): for a rate, either use the same rate for all outlets or set a different rate per outlet.
Save the tax group, then assign it to your products so tax is calculated at checkout.
Frequently asked questions
What's the difference between a tax group and a tax rate? A tax rate is a single named percentage; a tax group combines one or more rates that apply together and is what you assign to a product.
What does Compound do? A compounding rate is applied on top of the other non-compounding rates (tax on tax), rather than on the base amount alone.
Can a rate differ by location? Yes — for a rate you can set a different rate per outlet instead of using the same rate everywhere.
How does tax get applied to a sale? Assign the tax group to a product; the tax is then calculated at checkout.
Step by step
- 1
Open Taxes
In the Merchant Hub, go to Settings → Taxes.
- 2
Add a tax group
Choose Add Tax Group, give it a Name (for example Standard Tax or Reduced Rate), and create it.
- 3
Add tax rates
Choose Add Tax Rate. Enter a Name (for example State Sales Tax or VAT) and the Rate (%) (for example 10.25). Add each rate that should apply together.
- 4
Set compounding (optional)
Turn on Compound for a rate so it's applied on top of the other, non-compounding rates (tax on tax).
- 5
Set per-outlet rates (optional)
For a rate, use the same rate for all outlets, or set a different rate per outlet.
- 6
Save and assign
Save the tax group, then assign it to your products so tax is calculated at checkout.
Frequently asked questions
What's the difference between a tax group and a tax rate?
A tax rate is a single named percentage; a tax group combines one or more rates that apply together and is what you assign to a product.
What does Compound do?
A compounding rate is applied on top of the other non-compounding rates (tax on tax), rather than on the base amount alone.
Can a rate differ by location?
Yes — for a rate you can set a different rate per outlet instead of using the same rate everywhere.
How does tax get applied to a sale?
Assign the tax group to a product; the tax is then calculated at checkout.