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Tax Calculations Issue

So I noticed last night that one of my customer orders didn’t have taxes calculated on checkout. I ran some tests and found that using any address in my state will generate taxes but if it is out of the state it will not generate any taxes. Any idea what is happening?

Hi @mikesellr!

It is possible that your state is a Destination-based sales tax state, where taxes do not get applied when shipping to other states, but only when shipping within the state.

Here is a great article from Taxjar that goes over this in more detail: https://blog.taxjar.com/charging-sales-tax-rates/

We use Taxjar to automatically calculate taxes for Webflow Ecommerce.

Ya seems I am in a state that does taxes based on other destinations but that means They should be just charged a different tax not nothing.

Something else I noticed about my taxes is that its applying the incorrect amount even in my state. The taxes applied are a flat rate of $2 then when it hits $40 it seems to be jumping to $3. I know for a fact that sales tax in Indiana is 7% and even varied on TaxJar. Something very strange is happening.

Here is my read only if you would like. https://preview.webflow.com/preview/thelovelylittleshoptemp?utm_medium=preview_link&utm_source=designer&utm_content=thelovelylittleshoptemp&preview=b27294c0e392d8e89b9de7275276bcff&mode=preview

Hi @mikesellr Taking a look now.

Hi @mikesellr!

I noticed that Indiana is a destination-based sales tax state. This means sales tax are only applied when shipping within the state of Indiana, and not when shipping to other states. The person receiving the product might have to pay use tax on the product within their state, but that is hard to enforce.

I ran a test within your shop and noticed that a 7% sales tax is being applied when shipping within the state of Indiana - screenshot. I’m not sure where the flat-rate of $2 or $3 is coming from as taxes are applied by a percentage and not a flat-rate. I could not reproduce these numbers in my test. I am noticing that you have shipping based on price and those are flat-rates depending on the price of the product.

Thanks @johnramos

Gotcha, problem is I dont have nexus but since i use printful and they do I get charged for the tax. This means I would eat the cost of the tax or I would need to find a way to charge the customer the tax. I’m thinking adding the printful locations as a nexus location should fix the issue.

@mikesellr Nice, sounds good!