U.S. tax categories

U.S. tax categories are only available for shops with Automatic taxes enabled. With Automatic taxes, all products are set as uncategorized for taxes which should work for most products. If you have individual products with different tax requirements (like clothing, services, or digital goods), you can assign U.S. tax categories on a product-by-product basis within each product.

Changing the U.S. tax category for a product may change how much tax is collected for that particular product in some locations — tax laws vary from state to state. Adding the correct U.S. tax category will allow TaxJar to identify your products and make sure the correct tax rate is applied in each state. Before making changes to your U.S. tax categories, you may want to contact a local tax pro to ensure you are setting the correct category.

Heads up! If your product type is not on the list, then there are likely no exemptions or different tax rates that apply, and you can leave the U.S. tax category setting alone. If you’re unsure, your best bet is to reach out for guidance from a tax professional.