U.S. Tax Guidelines

These recommended settings can be used for most tax configurations for stores within the United States.

Tax Classes

Tax Class Recommended Setting
Tax Class for Shipping None

Calculation Settings

Calculation Recommended Setting
Tax Calculation Method Based On Total
Tax Calculation Based On Shipping Origin
Catalog Prices Excluding Tax
Shipping Prices Excluding Tax
Apply Customer Tax After Discount
Apply Discount on Prices Excluding Tax

Default Tax Destination Calculation

Setting Recommended Setting
Default Country United States
Default State State where business is located.
Default Post Code The postal code that is used in your tax zones.

Price Display Settings

Setting Recommended Setting
Display Product Prices in Catalog Excluding Tax
Display Shipping Prices Excluding Tax

Shopping Cart Display Settings

Setting Recommended Setting
Display Prices Excluding Tax
Display Subtotal Excluding Tax
Display Shipping Amount Excluding Tax
Display Gift Wrapping Prices Excluding Tax
Display Printed Card Prices Excluding Tax
Include Tax in Grand Total Yes
Display Full Tax Summary Yes
Display Zero Tax Subtotal Yes

Orders, Invoices, Credit Memos, Display Settings

Setting Recommended Setting
Display Prices Excluding Tax
Display Subtotal Excluding Tax
Display Shipping Amount Excluding Tax
Include Tax in Grand Total Yes
Display Full Tax Summary Yes
Display Zero Tax Subtotal Yes

Fixed Product Taxes

Setting Recommended Setting
Enable FPT No, except in California.