When it comes to setting up your U.S. tax rates, you have a variety of options available. Let's explore each option below.
In this article
- Option #1: Automatic tax rates
- Option #2: Manual tax rates
- Option #3: Full ShipCompliant tax integration
- Option #4: Avalara tax integration
- Option #5: Custom Tax Rates
- Resources for Verifying Tax Rates / Tax Lookup Tools
Option #1: Automatic Tax Rates
By default, Commerce7 offers ShipCompliant-supplied tax rates based on zip code. These tax rates are updated on a monthly basis at no additional cost to you.
If you'd like to look up specific tax rates that will be applied to orders, please follow these steps:
- Go to Settings > Taxes and click United States
- Under the taxes lookup, enter in a zip code and click Search.
- For that zip code will be displayed broken down by General Merchandise, Wine, Food, and Freight.
This 'Automatic' tax table is managed by ShipCompliant and tax rates cannot be edited by Commerce7.
Option #2: Manual Tax Rates
If you'd prefer, you can set up Manual tax rates (one rate per state). Note that these are state-based and not zipcode-based).
- To enable manual tax rates, go to Settings > Taxes > United States.
- Click on the link to configure taxes.
- Once you click this, you'll be presented with a list of states.
- Click into each to configure tax rates.
If you change your mind, you can change back to using automatic rates at any time.
Option #3: Full ShipCompliant Tax Integration
This integration requires a paid ShipCompliant account and will pull tax rates as configured in your ShipCompliant account.
- Configure your ShipCompliant integration under Apps & Extensions > ShipCompliant.
- When configuring your ShipCompliant Extension, there will be a field called 'USA Taxes From'.
- Select ShipCompliant from the drop-down in this field and click Save.
For more information on the ShipCompliant integration and how to setup your ShipCompliant App, click here. If you are currently using the FREE basic integration and would like to switch to a full ShipCompliant account, you must first contact ShipCompliant to setup an account. You can reach out to email@example.com.
Option #4: Avalara Tax Table
Another option for taxes is to connect an Avalara account and use their tax table. Easily connect your account with Commerce7 through the free app in Apps & Extensions. This will enable you to pull in real time tax rates from Avalara.
- For details on how to set this up, take a look here.
More information on Avalara's offering can be found here.
Option #5 Custom Tax Rates
Need to set up a Custom Tax rate that is not covered by the other options? Here's how!
For this example we are going to use the Colorado Retail Tax that went into effect in 2022.
- Go to Settings > Taxes
- Choose the Custom Taxes tab > Add Custom Tax button
- Name the tax, and choose Percentage or Flat Rate Per Order.
- Choose Country and State (if applicable).
- Enter dollar amounts for each tax type. When satisfied, click the Add Custom Tax button.
- You're all set! Don't forget to test your new Custom Tax rate.
Resources for Verifying Tax Rates / Tax Lookup Tools
As we all know, tax rates change all the time. And some states have complex or confusing tax rules. At Commerce7, we are not tax or compliance professionals. So if you have questions about a specific region or address, below are two great Tax Lookup Tools that you can take advantage of:
Resource #1 ShipCompliant
If you are a ShipCompliant customer, you can always log into your SC account and use their tax lookup tool.
- In the main menu, go to Tools > Tax Rates. Enter in the applicable address and click the View Tax Rates button (only City and State are required fields). Choose Offsite vs Onsite Sales Type.
- View the results. You'll see Excise and Sales tax information.
Resource #2 Wine Institute
If you are a member of the Wine Institute, then you have access to their comprehensive tax lookup tool (access the tax lookup tool here).
- Go to the Wine Institute site. Go to Our Work > Regulatory Compliance.
- Choose the Direct-to-Consumer Shipping link.
- Choose the Tax Lookup Tool card. You'll be prompted to log in to access the tool.
Resource #3 Free Tax Lookup in Commerce7
If you do not have accounts with ShipCompliant or the Wine Institute, you are welcome to use the free Tax lookup tool in Commerce7! These rates are updated on a monthly basis and come directly from ShipCompliant's tax tables.
- Go to Settings > Taxes.
- Choose United States.
- Enter the applicable zip code and click the Show Rates button.
- You will see the applicable rates displayed.