How to Configure Sales Tax in Magento 2?

February 07, 2022

Today, we’re going to teach you guys how to configure sales tax in a Magento 2 store.

In every eCommerce store, configuring sales tax is essential and must be paid attention to.

Fortunately, it is quite easy to configure sales tax in Magento 2 stores.

And in this post, we’re going to show you exactly how to configure sales tax in your Magento 2 store.

Step-By-Step Process to Configure Sales Tax in Magento 2

Please follow the below steps to learn how to configure sales tax in your Magento 2 store.

First of all, log in to your admin panel and navigate to Stores > Settings > Configuration.

After that, expand the Sales tab and click on the Tax option.

Next, expand the Tax Classes tab and mention your desired Tax Class option for Shipping, Product, and Customer.

Now, expand the Calculation Settings section and do the following:

Select either Unit Price, Row Total, or Total as per your requirements in the Tax Calculation Method Based On field.
Specify the base for tax calculation in the Tax Calculation Based On field.
Select either Including Tax or Excluding Tax in both Catalog Prices & Shipping Prices fields.
Select Before Discount or After Discount as per your requirements in the Apply Customer Tax field.
Select Before Discount or After Discount as you wish in the Apply Discount on Prices field.
Select either Customer Price If Available or Original Price Only in the Apply Tax On field.
Select NO in the Enable Cross Border Trade if you don’t ship outside your country. Select YES if you ship outside your country.