Therefore, as an e -commerce shop owner, you need to abide by the sales tax. This means, especially in the United States, you must collect sales taxes from buyers in the state you are connected. All states have a slightly different definition of relations, but in most cases, states believe that the \”entity existence\” or \”economic connection\” based on the sales of the state will have a relationship.
Even after you have completed the research to understand where you have a connection, how much will you charge? Does it vary from customers? Why This must be so complicated?
More importantly, is there a solution that can automate everything, so that WooCommerce customers do not have to deal with any these problems? The good news is, yes!
First of all, we will explain how the sales tax operates, and then we will show you how to use Taxjar from the entire process of mobilizing, so that you no longer have to worry about the sales tax.
Although the correct charging rate may be tricky, a little reading will help you understand it immediately. Today, we will explain different sales tax rates in the United States and help you determine the tax rate charged to customers.
If you are a variety The continuous development of e -commerce companies of Walmart, and hoping to use fully automatic sales tax and application services, we recommend that you choose
taxjar . Let’s start.
The correct tax rate is very difficult
45 states and Washington Special Zone There are sales tax.
It was returned to the states and places to pay the cost of public safety, roads and other states. The sales tax is managed at the first level of each state, so the tax rules and regulations of each state are different . A few states are quite simple.
They have a sales tax rate for the entire state, generally between 4-7%-this means that you only need to charge the single tax rate at the relevant connection. Example:
You are a science fiction souvenir seller living in Connecticut.
Because you live there, you In that state , there is a sales tax relationship . Because Connecticut’s sales tax rate is only in the state and there is no local tax rate, your life is simple: In most cases, you only need to levy 6.35% of the sales tax rate for all sales.
It is not too much to set taxes for these states. Trust. But there is a problem. (Picture source: Ali Edwardz)
But most states make life more complicated. 
They not only implemented a single tax rate in the state, but
It is for this reason that you may eventually receive the state, county, city, city, and \”county, city, and\” A combination of special tax zone \”taxes.
Example: You sell skin care products in the home of Oberz, Ohio.
Ohio is a sales tax based on origin (will be introduced in detail later), so your sales tax rate in Obetz is 7.5%.
This is composed of 5.75% Ohio’s sales tax rate and 1.25% of Franklin County tax rates. As you may have guessed, if you are selling tax, county tax and Urban tax
] The area of \u200b\u200bthe region may be connected, which may become more complicated
.
Online seller’s \”wrench\”: sales tax based on origin and destination
[ 123]
Then there is another wrench that can be placed in equal formula. In terms of transportation products, some states are based on sales tax states, and some are target -based sales tax states.
This also affects whether you charge taxes and charges. 
Let’s discuss it in detail.
Sales tax based on origin The sales tax based on origin is quite simple. If you have a local connection in a certain state (that is, your company is located in the state), and you sell products to buyers in the state, you are selling at the place of origin (that is, your location) Pay the sales tax
.
- The state that uses the sales tax based on origin is:
- [ 123] California*
- Illinois
- Mississippi
- Missouri [ 123]
- [ 123] Tennessee
- Texas
- Utah
- Virginia [123 ]
- * In California, the state, county, and municipalities are based on origin, but the regional tax is based on the customer’s location.
Arizona
New Mexico
Ohio
This is the only state with this rule. If you live in one of these states and sell it to customers in the same state, you only need to press (you can use the sales tax of taxjar Enter your postal encoding+ 4 in the calculator
to see your local sales tax rate .) [ 123]
Example: You live in Owen City, Texas, but sold to buyers in Alche, Texas. Even if you sell them to people in a completely different tax area, you will still charge them 8.25%
Owen [123 ]sale tax. The taxThe ratio is composed of 6.25% of Texas tax rates, 1% of Owen sales tax, and 1% tax rates of the Dallas Metropolitan Transport Authority (MTA). An example of an effective sales tax rule based on origin. Destination tax based on destination
Destination -based sales tax is more complicated and more common. 
In these states, the sales tax is charged according to the customer’s location (that is, their \”delivery address\”).
When you are in contact, this is also the most common situation in American long -range sellers.
Talk later.
Example: You operate your business outside the warehouse of Stanford, New York, and sell the goods to someone in Buffalo, New York State. Since New York is a destination -based sales tax state, you will be based on
8.75%
The tax rate is directed to Your buyer collects sales tax. This is the 4% tax rate of New York State plus the tax rate of 4.75% of Yili County.
The destination -based state requests you to collect the tax rate of customers , Not your own tax rate.
As you can see, when you try to collect taxes from buyers of destination -based states, the sales tax will involve more. Adopt sales tax as a remote seller
Another important consideration is related to the remote sellers. 
The \”remote seller\” in the sales tax term is considered to be connected with the sales tax in a certain state, but it is not in the state
Now, not only the entity exists (for example, (e.g. Location, employee or inventory), and the existence of \”economy\” in a state will also have a sales tax relationship.
When a company sells enough products to a state, economic connection will generate.
Each state’s laws on economic relations are different.
The sales threshold ranging from $ 10,000 to $ 500,000, and some states have no transaction threshold at all. You can read here Economic connection More information . In most cases, the tax rules based on destinations are applicable.
How to apply the tax rules to the distance seller.
Example: You live and operate your company in California, but hire a employee in Missouri. This means that you are now in California and Missouri
.Because you are a \”remote seller\”, the sales tax rules of the origin of Missouri Not applicable to you ]. Therefore, if you want to sell buyers in Missouri, you will collect sales tax to the buyer based on
local sales tax rate -even with destination -based sales tax rules [ 123]
. Decompired it: If you live in a sales tax state based on origin, please follow If you are regarded as a \”remote seller\” in the original place of origin , you may need to press If you are regarded as a \”remote seller\” in the destination -based state and are in contact in the state, You may need to charge sales fees at the total sales tax rate of the customer.
- ] This is not something that you are easy to master when you try it for the first time, So see more about this article about Essence
When will the freight sales tax be charged
Another thing to consider is, Many states also require the right state to be right Transport and delivery costs are levied sales tax .
Example: You have a connection on Rhode Island, and the state believes that shipping should be taxed. If you sell $ 10 products to customers and charge $ 2 freight, then you will collect the entire purchase Applicable sales tax rate .
On the other hand, some states, such as Alabama, do not consider part of the taxable transaction, so the freight is not taxed.
Therefore, if you transport the latest necessary toys to Alabama buyers with a commodity price of $ 19.99 and a freight of $ 5.00, You only need to pay $ 19.99 in $ 19.99 Commodity price charging sales tax .
These states said that if you display the freight from the price of the product separately, the freight is not taxed. If you include the cost in part of the product price, they are taxable.
Alabama [ [ [] 123] Arizona
Aidhiro
Aihohua State Louisiana
- Maine
- Nevada
- ] Oklahoma
- Utah
- Virginia **
- ** For these states, if the freight and handling fees are merged, the freight should be taxed.
- However, if they list and charge alone, it is not.
- 如果您在上面未列出的州有关联，您应该对客户的整个购买（
- 包括[123 ] Freight) taxation.
Maryland **
Massachusetts
Missouri
Wyoming [ 123]
The correct rate of charging should not cause headaches These things began to quickly become complicated. Fortunately, there are
from taxjarWooCommerce sales tax automation plug -in
. The plug -in will ensure that you charge an appropriate amount of sales tax to each customer, whether based on the sales tax based on origin, destination -based sales tax, or taxable freight. Taxjar’s
Woocommerce sales tax plug -in
It is very suitable for:
Real -time update its sales tax rate
Automated their sales tax declaration declaration Obtain sales tax data from multiple channels in a state of easy reading and return. It can:
Provide economic relations, and provide the suggestion steps that have been adhered to in any NSW Treatment and expansion demand increase Any ascending, such as seasonal or special transactions
- Allows to easily manage customers and product exemptions
- Sales tax on the state government What is the help of the declaration form?
- As many sellers discovered, receiving an appropriate amount of sales tax is just the beginning. After setting up the shopping cart, you need to choose how to return the sales tax you charge back to the state.
To manage sales tax for your business, you have the following options:
- It handled it yourself. We recommend that you make a calendar to track your deadline and the time you submit your application, log in to the state and enter the information to complete your declaration.
- Select a recommended Woocommerce partner Taxjar, which can completely automate everything for you.
- hire sales taxists to help you manage everything.
If you choose to use taxjar to manage your sales tax, its working principle is as follows:
- ]
Do you want to know more about installing WooCommerce sales tax plug -in from Taxjar?
View their Installation Guide
. TAXJAR will be directly connected to your Woocommerce store (and anywhere you sell, such as Amazon or other markets). Next, they will introduce your transaction data into a single sales tax instrument board that is collected by the collection amount and determine your association position.
This is very helpful for e -commerce merchants, because you can see the full picture of the sales tax of each state at a glance. At this time, Taxjar can now provide you with an accurate sales tax rate at the checkout. Never update the rate table again.
After connecting the instrument board, you can choose the way to manage files. You can choose to register Autofile. Taxjar will submit your tax reporting form to the state at each expiration, or you handle it yourself. Visit Taxjar to get more information about
how to help WooCommerce merchants .
If you spend too much time to manage the sales tax, please rely on TAXJAR and restore development of your favorite business. Do you want to start now?
Call 855-800-6681.
