Join Patrick Rauland for an in-depth discussion in this video Add tax rates, part of WordPress Ecommerce: WooCommerce.
- [Instructor] In an earlier video, we configured our general tax settings, but we didn't cover the tax rates themselves. Let's configure those. Under WooCommerce, Settings, and then Tax, we can click on Standard Rates. If you imported any tax rates from the welcome wizard, you'll see them here. By default, the welcome wizard knew my store was located in Colorado, so it pulled in the Colorado state tax. But let's say I have a warehouse in California.
That gives me nexus in California, which means I also have to pay tax there. Let's add a row for California. Insert Row, type in the country code here, Tab, CA is the code, and then let's add the rate. I'm making this rate up here and we can name it, and we can keep all of those the same. Now, this is the state tax. Some states also have very specific ZIP code taxes. Let's show one of those.
So, if my factory or my warehouse is located in a specific ZIP code, I'll also have to pay any of those special taxes. So, if it's 90210, there could be an additional tax rate. Again, I'm making this up. There's a column here called Priority. Priority is what you want to use to make sure that multiple tax rates aren't applied at the same time. So, you want to have all state level taxes set to one priority and all ZIP code level taxes set to another.
If you live in a country where there's a federal tax, you would want to set that to something else. If there was a city level tax, we could add one of those too. And you'd want to give this yet another priority. If you happen to have a lot of ZIP codes, some states do have weird rules with ZIP codes where you have to apply it to a whole bunch of them, you can do just like we did with shipping zip codes. You can add a range. So, 90210 through 90219, or you can add a wild card.
Let's go ahead and save these. So, we've configured all of our standard rates, but if we go back to the tax settings page, there's also Reduced Rates and Zero Rate Rates. If you have products that have a reduced tax or no tax, you have to enter those special rates here, just like we did for the Standard Rates. If you have a zero rate product or a reduced rate product, you also have to mark it as such in WooCommerce. So, in some states, food items are not taxed. Let's go ahead and show how that would look in WooCommerce.
I'll go to Products, I'll go to my mineral water, and under Tax Class, instead of Standard, I'd select Reduced Rate or Zero Rate, and then I would use the special rates applied in that table. Now, before you launch your store, I highly recommend that you check with a tax professional in your location.
- Why WooCommerce?
- Installing WooCommerce
- Setting up your store
- Adding products, including images and data
- Creating a subscription product
- Setting up shipping
- Configuring payment options
- Setting up taxes
- Customizing your theme
- Connecting Google Analytics and MailChimp
- Managing orders and reports