What should my WooCommerce tax settings be?

Disclaimer: Your tax settings may vary depending on your state and individual shop requirements. This guide represents a general set of options which will work for many stores. If something in this guide contradicts something specific to your store, please use your own judgement when configuring.

WooCommerce Settings

  1. Under General Options
    1. Set your store’s Base Location
  2. Under Tax Options
    1. Check the box for Enable Taxes
    2. In the dropdown for Prices Entered With Tax choose No, I will enter prices exclusive of tax
    3. In the dropdown for Calculate Tax Based On be sure to choose a customer field you are collecting on your checkout. If you do not collect shipping addresses, you must use the billing address. If you don’t collect either you must use Shop Base Address.
    4. For the Default Customer Address choose Shop Base Address
    5. For Shipping Tax Class, choose Shipping tax class based on cart items
    6. For Display prices during cart/checkout choose Excluding Tax

Product Settings

  1. Confirm that each of your taxable products has Tax Status set to Taxable
  2. Confirm you have chosen the appropriate Tax Class (usually Standard)