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.
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.
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.
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.”
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.
Tax rates with rooftop precision
Apply the right taxes at the right time, with calculations 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.
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.
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.
Tax rates with rooftop precision
Apply the right taxes at the right time, with calculations 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.
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.
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
Let’s face it: with thousands of different rates and 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.
Frequently asked questions
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 out this 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.
Shopify Tax is free on your first $100,000 of US sales each calendar year. After $100,000, a 0.35% calculation fee (0.25% for Shopify Plus merchants) will be charged on orders in states where tax collection is enabled*. You won’t be charged more than $0.99 per order, no matter the order total, and you won’t pay more than $5,000 in a calendar year, no matter how much you sell.
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 calculation 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 calculation 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.
If you use Vertex via the Tax Platform solution or are a Shopify Plus merchant using Avalara or Drinks.com, the third-party tax service will manage tax calculation. Shopify Tax will be automatically disabled and you will not pay for Shopify Tax.
Third-party services available on the Shopify App Store that manage registration and tax filing can integrate with Shopify Tax. Today, Shopify Tax provides you with sales tax liability insights, sales tax calculations, collection, and reporting. You can use a third-party service available on the Shopify App Store to manage registration and filing. In the future, we may expand our offering to provide these services as well.
Shopify Tax is the most popular service for most merchants because it offers the highest level of compliance with a minimal amount of upkeep. You can also choose to use an approved third-party tax service via the Tax Platform, or one of Shopify’s legacy tax services. These legacy 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 the Shopify Help Center or 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.