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Do I Have to Charge Sales Tax on Shopify?

Last updated on October 1, 2022 @ 3:47 pm

If you’re running a business in the United States, you’ll need to collect sales tax on your Shopify orders. The amount of sales tax you need to collect depends on the laws in your state, but you can use Shopify’s built-in sales tax settings to automatically calculate and add the correct amount of sales tax to your orders.

In most states, you’ll need to collect sales tax on any product or service that you sell. This includes physical goods as well as digital products and services. The only exception is if you’re selling a product or service that is exempt from sales tax, such as food or prescription drugs.

PRO TIP: If you are selling products through Shopify, you may be required to charge sales tax on your transactions. Depending on the laws in your state, you may need to collect and remit sales tax to your state’s tax authority. Failure to comply with sales tax laws can result in penalties, interest, and other fines.

You can use Shopify’s built-in sales tax settings to automatically calculate and add the correct amount of sales tax to your orders. To do this, you’ll need to add your business location and set up your tax rates in your Shopify admin. Once you’ve done this, Shopify will automatically add the correct amount of sales tax to your orders based on the delivery address.

If you’re not sure whether or not you need to charge sales tax on your Shopify orders, we recommend talking to a accountant or tax advisor. They’ll be able to help you figure out if you need to collect sales tax and how much you should charge.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.