Create and set Different Tax Rates and set Tax Rules
In Magento 2 you will be able to create and set different Tax Rates for certain locations and/or product types.
Managing your Magento 2 Tax Rates, includes:
- Step 1: Add Tax Rate
- Step 2: Add Tax Rule
STEP 1: Add Tax Rate
To create a new Tax Rate, login to your website’s admin area and navigate to the Stores>Tax Zones and Rates section from the main admin panel.
Click on the Add New Tax Rate button.
Now you will be able to configure the tax rate:
- Tax Identifier – The name of the tax used for internal identification
- Zip/Post is Range – If selected you will be able to set up a Range of Post codes in the two fields below this one
- State – The State on which you wish to impose the Tax Rate (If your country does not have States, this option will be grayed out)
- Country – The Country on which you wish to impose the Tax Rate
- Rate Percent – The Tax Rate percentage the customer will need to pay
When you are done, click on the Save Rate button to save the Tax Rate.
STEP 2: Add Tax Rule
Once you have configured a Tax Rate you will want to implement it in a Tax Rule. To accomplish that, you will need to navigate to Stores>Tax Rulesfrom your admin dashboard.
In the Tax Rule Information part of the configuration, you will need to put a Name for the Tax Rule and select the Tax Rate for it.
If you expand the Additional Settings you will see a few more options to configure:
- Customer Tax Class – Customer Tax Classes are used in certain cases when the purchase is not retail (wholesale for example)
- Product Tax Class – Different types of products have different Tax Classes (food and electronics for example). To better manage your products, you can create a new Tax Class here that corresponds to the product’s type
- Priority – The priority of this class when calculating from multiple tax rules (If two classes have the same priority they will be added during tax calculation)
- Sort Order – Modifying this will change the display order of the tax if more than one tax can be selected (lower is higher with 0 being displayed on top)
For additional settings regarding the Taxes calculation of your Magento 2 Store you will need to visit the Stores>Configuration section of your admin dashboard and then access Sales>Tax.