Business users will now be able to calculate taxes automatically for their customers based on address details entered during checkout and type of product purchased.
This is applicable on all payments being made on order forms (including selling membership courses), online stores, invoices and payment links. The tax will be dynamically calculated based on the customer state and zip code along with the product category.
This works only if the business has enabled address collection during checkout or has a saved address in the contact details in case of payments being made on invoices. Do not forget to turn on address fields to make tax calculation work accurately.
This works dynamically only for people selling in the US. For other countries, we already support manual tax rates which can be directly attached to products and added to subtotal while checkout.
You can enable automatic tax calculations by navigating to Payments -> Settings -> Taxes and switching on the toggle. Businesses must specify the nexus addresses or states where they intend to collect taxes and set a default product tax category, which will apply to all products by default.
You can assign specific tax categories to individual products separately from the default category when creating or editing products under Payments → Products. Taxes apply to both one-time and recurring products, with a detailed breakdown of the tax amount available on the order details and transaction details pages.
