Magento Commerce, 1.14.x

Magento 1.x Software Support Notice
For Magento Commerce 1, Magento is providing software support through June 2020. Depending on your Magento Commerce 1 version, software support may include both quality fixes and security patches. Please review our Magento Software Lifecycle Policy to see how your version of Magento Commerce 1 is supported.

Tax Zones & Rates

Tax rates are generally applicable to transactions that take place in specific geographical areas. The Tax Zones and Rates tool enables you to specify the tax rate for each geographical area for which you collect and remit taxes. Because you give each tax zone and rate specification a unique identifier, you can have multiple tax rates for a given geographic area (for example, for places that do not tax food or medicine but tax other products). When numerous taxes must be defined, you can simplify the process by importing the tax data from a spreadsheet. Select Sales > Tax > Import/Export Tax Rates.

Manage Tax Zones & Rates
Manage Tax Zones & Rates

To define tax zones and rates:

1. On the Admin menu, select Sales > Tax > Manage Tax Zones & Rates.
2. In the upper-right corner, click the Add New Tax Rate button.
Tax Rate Information
Tax Rate Information
3. In the Tax Rate Information section, do the following:
a. In the Tax Identifier field, enter a unique name for this tax. Do not use spaces. This identifier is not shown in the store if the Tax Titles section is completed, as described below.
b. Select the location of the Country and State. (Starting in EE 1.13.1, you can use the wildcard character * for State.)
c. Do one of the following:
  • If you want the ZIP or postal code represented as an individual code, set Zip/Post is Range, to “No.” Then, enter the Zip/Post Code.
  • If you want the ZIP or postal code represented as a range, set Zip/Post is Range to “Yes.” Then, enter the Range From and Range To values.

The wildcard character * can be used to represent all values. For example, 90* means all ZIP codes from 90000 through 90999.

d. In the Rate Percent field, enter the percentage of tax.
4. In the Tax Titles section, enter a name of this tax for each store view.
Tax Titles
Tax Titles
5. When complete, click the Save Rate button.