Magento Tax per state
Internet Ecommerce shipping transactions typically require tax only if the product sold is being shipped to the merchant’s state of residence. Here is how to set up tax by state in Magento.
System>Configuration>Sales>Tax>Tax Classes> Tax Class for Shipping> select ‘Taxable Goods’ from dropdown menu
- Default Tax Destination Calculation>Default State> select the Merchant’s state of residence from dropdown menu
- Default Tax Destination Calculation>Default Post Code> wildcard asterisk will include all postal codes in the state
- Shopping Cart Display settings>Display Prices> set to Excluding Tax
- Shopping Cart Display settings>Display Subtotal> set to Excluding Tax
- Shopping Cart Display settings>Display Shipping Amount> set to Excluding Tax
- Shopping Cart Display settings>Include Tax In Grand Total> set to No
- Shopping Cart Display settings>Display full tax summary> set to No
- Shopping Cart Display settings>Display Zero Tax Subtotal> set to Yes
- Orders, Invoices, Creditmemos Display Settings> same as Shopping Cart Display Settings
- Sales>Tax>Manage Tax Zones & Rates> add new tax rate or edit the current tax rate>Tax Rate information> set to the Merchant’s state criteria, use wildcard asterisk for Zip/Post Code
- Catalog>Manage Products>[edit product]>Prices>Tax Class> set to Taxable Goods
