Product-specific tax rates

Some of the products that you sell can have reduced or increased tax rates or even be tax-exempt. Regardless which tax setup you use in your store — automatic or manual — you can assign different tax rates to different products.

If you're uncertain about which taxes apply to your products, it's advisable to consult with a local tax professional for guidance.

Table of content

1. Assigning product-specific rates for automatic taxes
2. Assigning product-specific rates for manual taxes

Assigning product-specific rates for automatic taxes

After enabling automatic taxes, the same standard tax rate of your store’s region is applied to all products by default. However, if certain products require non-standard rates, you can adjust the tax rate for them accordingly.

To change tax rate for a product:

1. From your store admin, go to Catalog → Products.
2. Open the product.
3. Click the Taxes tab. You will see the tax rate that is currently applied to this item.
4. Click Change tax rate for this product:
   
   
5. From the dropdown, choose the tax rate that applies to your product.
   For the US merchants: You can use the search to find the rate you need.
6. Save the changes.

That’s it! Now, this product will be taxed according to the tax class that you chose.

Repeat the steps for all the products that should be taxed differently in your store.

Assigning product-specific rates for manual taxes

Once you have manually configured all the necessary taxes for the locations you sell to, you can select which taxes to assign to specific products in your store. By default, all taxes are applied to all products.

To assign tax rates to a product:

1. From your store admin, go to Catalog → Products.
2. Open the product.
3. Click the Taxes tab. You will see the list of tax rates that are currently active in your store.
4. Enable the tax rates that apply to this product and disable those that do not apply. If it's a non-taxable product or service, disable all the tax rates.
   
   
5. Save the changes.

Now, this product will be taxed according to the tax rates that you have enabled for it.

Repeat these steps for all the products that should be taxed differently in your store.