Shopify Tax

Shopify Tax is built right into your store's admin, making it easy to get started collecting sales tax. For more details on how to use Shopify Tax, read this blog post.

Remember, it's your responsibility to consult with local tax authorities or a tax professional to verify that you're collecting the correct tax rates from your customers and to ensure you file and remit your taxes correctly.

Shopify Tax is free on your first $100,000 of global sales each calendar year. After $100,000, a 0.35% calculation fee (0.25% for Shopify Plus merchants) will be charged on orders in states where tax collection is enabled*. You won't be charged more than $0.99 per order, no matter the order total, and you won't pay more than $5,000 in a calendar year per region (US/EU/UK), no matter how much you sell.

Here are some examples:

You're a merchant who sells a $30 USD t-shirt in a state where you collect sales tax. You'll be charged a calculation fee of $0.10. (If you use Shopify Plus, you'll be charged $0.08 instead of $0.10.) You're a merchant who sells a $20,000 USD rug in a state where you collect sales tax. You'll be charged a calculation fee of $0.99 because of the cap. Any fees for Shopify Tax will be reflected on your Shopify subscription invoice. *Fee is calculated based on the total transaction amount, including taxes and shipping.

This pricing applies to stores that make $100,000,000 USD or less in annual sales, or the equivalent in your local currency. If your sales are above $100,000,000 USD annually, or the equivalent in your local currency, then contact your Merchant Success Manager (MSM) for pricing.

Shopify Tax is the most popular service among Shopify merchants because it offers the highest level of compliance with little upkeep.

Shopify also offers Manual Tax, which allows you to set your own tax rates.

This service is free, but you're required to keep rates up to date—or you risk exposing yourself to sales tax liability in US jurisdictions. For example, you won't have access to precise, address-based sales tax calculations or automatic product-specific rates and exemptions. You'll have to keep track of your liabilities and rate or regulation changes on your own and make updates manually.

You can also use an approved third-party tax service via the Tax Platform. For more information about your options, visit the Shopify Help Center or the Taxes and duties section of your Shopify admin.

If you use Vertex or Avalara via Tax Platform or are using Drinks.com, the third-party tax service will manage tax calculation. Shopify Tax will be automatically disabled and you will not pay for Shopify Tax.

Third-party services available on the Shopify App Store that manage registration and tax filing can integrate with Shopify Tax. Today, Shopify Tax provides you with sales tax liability insights, sales tax calculations, collection, and reporting. You can use a third-party service available on the Shopify App Store to manage registration and filing. In the future, we may expand our offering to provide these services as well.