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Taxes not always being calculated

Hi, I recently launched a small Ecommerce site and noticed that tax isn’t always being charged to the customer. I do have all the “auto calculate” tax options on, but the final transaction total that shows on the order details and in my Stripe account is a flat amount that shows tax hasn’t been charged on this specific transaction.

So far in 24 hours we’ve had 3 total purchases. The first was a test, which did include tax in the total, and it also showed tax in the second, but in the third no tax was charged. I don’t want this to be an ongoing issue with transactions that I have to watch and confirm for every one.


Here is my site Read-Only: LINK
(how to share your site Read-Only link)

Hi @PeteTrav,

In what state do you reside? In what state does this person/transaction reside in?

With taxes, it can be a tricky thing. Depending if you are in a state that is destination-based or one that is origin-based will depend on how tax is calculated or if it will even be pulled.

Best Regards,
~ Brandon

Hi @WebDev_Brandon,

Thank you so much for your quick reply.
The company is located in New York (in the Albany area) and the transaction came from New Jersey.

-Pete

Hi @PeteTrav,

NY is a destination-based sales tax state. What this means is that they will only collect sales tax for states that require it. Taxjar knows what states do and do not. I will have our resident Taxjar expert look into this though just to make sure.

Best Regards,
~ Brandon

Hi @PeteTrav, just following up on what my colleague Brandon mentioned. NY is a destination-based tax state so only when shipping within NY will sales tax be collected. The taxes applied could include a combination of state, county, city, and district tax rates.

More information can be found here: https://blog.taxjar.com/charging-sales-tax-rates/

Also here is a great article that goes over how sales tax is applied when selling to different states: https://www.thebalance.com/sales-taxes-across-state-lines-4058714

Thanks @johnramos and @WebDev_Brandon , I also looked into that and came up with the same answer. I really appreciate your help. I never knew that about NY or that it was even a thing, so thats good to know.

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