Business users will now be able to calculate taxes automatically for their customers based on address details entered during checkout and the type of product purchased
This is applicable on all payments being made on order forms (including selling membership courses), online stores, invoices, and payment links. The tax will be dynamically calculated based on the customer’s state and zip code along with the product category
This works only if the business has enabled address collection during checkout or has a saved address in the contact details in case of payments being made on invoices. Do not forget to turn on address fields to make tax calculation work accurately
This works dynamically only for people selling in the US. For other countries, we already support manual tax rates which can be directly attached to products and added to subtotal during checkout
Automatic tax calculations can be enabled under Payments -> Settings -> Taxes using the toggle to enable automatic tax calculation. Businesses will be required to select the nexus addresses/states where they want to collect taxes along with defining a default product tax category which acts as the default category for all your products
Specific product tax categories for individual products can also be defined separately from the default category while creating or editing products under Payments -> Products
Taxes are applicable for both one-time and recurring products and a breakdown of the amount paid will be available on the order details and transaction details page
What’s next?
Configure whether the tax amount is inclusive or exclusive of the price coming up next
