Shopify Tax

Don’t sweat your sales tax

Take the stress out of sales tax in the United States with automated sales tax calculations, nexus tracking, and filing prep all from within Shopify admin.

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Person smiling while laying in a hammock with a laptop. State regions and tax jurisdictions for Nevada, New Jersey, Connecticut, and New Mexico float around them. The sales tax insights interface from the Shopify admin shows that $87,300 of $100,000 has been reached towards the regional threshold in New Mexico.

Track your liability

Oversee your current sales tax obligations and find out where you’re approaching thresholds.

Collect the right amount

Activate collection at checkout with product- and location-specific accuracy.

Simplify filing prep

View your sales and tax data by state, county, and local jurisdictions, making it easier to accurately file your sales tax returns.

A person is smiling and drinking coffee while using Shopify Tax to manage their sales tax in the United States.

Your business. Your sales tax. Manage it all in one place.

Staying compliant begins and ends in Shopify. Track nexus, calculate taxes and manage reporting from your Shopify Admin.

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Features that simplify sales tax

Sign in to your admin and access native, data-driven tax features that get more insightful with every “cha-ching.”

Shopify Tax enables merchants to manage sales tax in every state, region, and jurisdiction, directly from their store admin.

Sales tax insights

Know where you’re liable with a state-by-state overview of your current sales tax obligations. Sales tax insights also reveal where you’re approaching tax thresholds, allowing your business to plan and prepare accordingly.

The city skyline of San Francisco on a sunny day represents a specific sales tax jurisdiction, region, and state. A beige baseball hat represents apparel as a product category with a specific sales tax rate.

Tax rates with rooftop precision

应用在正确的时间正确的税收,钙ulations based on the buyer’s precise address (also known as rooftop accuracy). Shopify deciphers the 11,000+ United States sales tax jurisdictions, so you don’t have to.

Black and white sneakers in product category section of Shopify store admin.

Product categorization

Be sure you’re collecting the right rates by categorizing every product you sell. Not sure which to choose? Shopify helps you through the process by suggesting the categories that best fit your products.

Enhanced sales tax reports

View your sales and tax data by state, county, and local jurisdictions, making it easier to accurately file your sales tax returns.

Three people are smiling while managing sales tax on a laptop. A yellow banner with a check mark reads, “All your products have been categorized!” Below, a box reads, “Regions you’re collecting in” and lists Arizona, New York, and Washington with a “Collect sales tax” button.

Rate updates are worry-free

Stop wading through never-ending tax rate changes (or worrying about the ones you haven’t caught). Categorize your products once, and Shopify will handle any necessary updates thereafter.

Valuable information is delivered to you

You’ll be notified of significant changes in the tax world that impact your business, and receive guidance to take action when you need to.

  • This is 100 times better. Previously, to sort through all the data, I had created a custom spreadsheet and formulas to spit out the data that the state of Illinois needs. With this report, that's no longer necessary. I just pull up the Illinois Department of Revenue site in a new browser tab and copy the numbers. Takes 15 minutes max.
Connect Roasters
Caleb Benoit Founder, Connect Roasters

Spend less time keeping up with sales tax, and more on the things that matter

让我们面对现实吧:成千上万的不同的利率nd regulations across 11,000+ jurisdictions, sales tax in the United States is complicated and time consuming. Shopify Tax simplifies tax compliance, so you can focus on what’s really important—in your business, and in your life.

Get started with Shopify Tax
Merchant on purple couch is managing their US sales tax on a tablet. A list of states show where regional thresholds are being met.
Black sneakers are for sale on merchant’s Shopify store, where accurate sales tax is collected at checkout.

Introducing Shopify Tax

How to use insights, collection, and categories to help your business.

Sales tax insights are shown for every state in the Shopify store admin.

Sales tax insights

Easily track where you may be required to collect and remit sales tax.

Sales tax notifications clearly inform merchants of their collection rates and obligations in the United States.

Sales tax reports

Make filing prep faster easier, and more accurate

Frequently asked questions

Shopify merchants, on any plan, can useShopify Tax.
Today, Shopify Tax is built exclusively to manage your US sales tax obligations. For more information on how to set up and collect tax outside of the United States, visit theShopify Help Center.

Shopify Tax is built right into your store’s admin, making it easy to get started collecting tax in the United States. For more details on using Shopify Tax, check outthis blog post

Remember, it's your responsibility to consult with local tax authorities or a tax professional to verify that you’re collecting the correct tax rates from your customers and to ensure you file and remit your taxes correctly.

No., It’s up to you to decide where and when to collect sales tax.Shopify will not start collecting sales tax on your behalf. Each state has its own rules when it comes to collecting sales tax, and you can use Shopify Tax’s liability insights to figure out where you should collect.

Shopify Tax is included in the cost of your Shopify plan for the remainder of 2022. The first $100,000 of US sales each calendar year (per store) is free. After $100,000 of US sales, a competitive fee of 0.35% (0.25% for Shopify Plus merchants) will be charged when an online order is made in a state where you’re collecting sales tax.* To ensure that Shopify Tax is sustainable and affordable to businesses of all sizes, the fee is also capped at $0.99 per transaction and $5,000 per year. You won’t pay more than $0.99 cents on any given transaction or more than $5,000 in a calendar year, no matter how many sales your store makes.

Here are some examples:

  • You’re a merchant who sells a $30 USD t-shirt in a state where you collect sales tax. You’ll be charged a transaction fee of $0.10. (If you use Shopify Plus, you’ll be charged $0.08 instead of $0.10.)
  • You’re a merchant who sells a $20,000 USD rug in a state where you collect sales tax. You’ll be charged a transaction fee of $0.99 because of the cap.

Any fees for Shopify Tax will be reflected on your Shopify subscription invoice.

*Fee is calculated based on the total transaction amount, including taxes and shipping.

No. If you use Avalara or Drinks.com to calculate sales tax, you will not pay for Shopify Tax.

Yes. You can continue to use third-party services for registrations and filing.

Today, Shopify Tax provides you with sales tax insights, and accurate tax calculation and collection. In the future, we may expand our offering to provide other services like registrations and filing.

Shopify Tax is the most popular service for most merchants because it offers the highest level of compliance with a minimal amount of upkeep. But you can always choose to use an approved third-party tax service or one of Shopify’s legacy tax services. These services are free, but dependent on you keeping them up to date—or you risk exposing yourself to sales tax liability in US jurisdictions. As an example, you won’t have access to precise, address-based sales tax calculations or automatic product-specific rates and exemptions. You’ll have to keep track of your liabilities and rate or regulation changes on your own and make updates manually. Learn more about your options by visiting theShopify Help Centeror within the Taxes and duties section of your Shopify admin.

Go from taxing to relaxing

Shopify has the sales tax accuracy, reporting, and insights you need to feel calm and collected at tax time.