How to Configure US Tax in Magento 2

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How to Configure US Tax is one of the examples we want to give you after learning about tax rules and tax rates in Magento 2. If your store is operating in the US, this tutorial would be helpful for you. In this topic, I will give you the detailed instruction of the US tax configuration that surely helps the tax rules and rate apply for your tax in the correct way.

In addition to US Tax, you also have certain examples about Canada Tax and EU Tax. Follow these links to get a deeper study about the tax rules and rates configuration on Magento 2 stores.

Steps to Configure US Tax in Magento 2

  1. On the Admin Panel, Stores > Settings > Configuration.
  2. On the left panel, under Sales, choose Tax.
  3. Open the Tax Classes section, set the Tax Class for Shipping to “None”.

How to Configure US Tax Tax Classes Settings

  1. Scroll down to the Calculation Settings section,
    • In the Tax Calculation Method Based On field, allow calculating the tax on the “Total” value of the order.
    • Choose the “Shipping Origin” option for the Tax Calculation Based On field.
    • “Excluding Tax” from the Catalog Prices and Shipping Prices when setting up US Tax.
    • Allow the US tax include the discount amount by choosing “After Discount” in the Apply Customer Tax field.
    • “Excuding Tax” from the discount value in the Apply Discount on Prices field.

How to Configure US Tax Calculation Settings

  1. Expand the Default Tax Destination Calculation section,
    • Set the Default Country to “United States”.
    • Set Default State to where business is located”.
    • Set Default Post Code to the number range according to the state you set.

How to Configure US Tax Default Tax Destination Calculation

  1. In the Price Display Settings workplace, “Excluding Tax” from the Display Product Prices in Catalog and Display Shipping Prices.
  2. Open the Shopping Cart Display Settings workplace,
    • “Excluding Tax” from the display of Prices, Subtotal, Shipping Amount, Gift Wrapping Prices, and Printed Card Prices.
    • Set Include Tax in Grand Total to “Yes”.
    • Set Display Full Tax Summary to “Yes”.
    • Set Display Zero Tax Subtotal to “Yes”.
  3. Expand Orders, Invoices, Credit Memos, Display Settings section:
    • “Excluding Tax” from the display of Prices, Subtotal, and Shipping Amount.
    • Set Include Tax in Grand Total to “Yes”.
    • Set Display Full Tax Summary to “Yes”.
    • Set Display Zero Tax Subtotal to “Yes”.

How to Configure US Tax Display Settings

  • In the Fixed Product Taxes workplace, to approve the US tax, choose “No” for Enable FPT field.

How to Configure US Tax Fixed Product Tax

The bottom line

That’s all for today. If you want to run your business in the US market, make sure to configure US Tax now. And in case you want to learn more about other tax-related topics, please click on the links below. Don’t hesitate to contact us for more guidance if you need.

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