What’s new

You can now create Tax Zones under Manual Taxes to organize and apply your own tax rates based on a customer’s country or state. This helps you manage different manual tax setups by region and keep your tax settings easier to maintain.

Create geographic tax zones

• Create zones by grouping specific countries and states.
• Name each zone based on the region or the tax setup it represents.
• Each country or state can belong to only one Manual Tax Zone to prevent overlap.

Example: Create a Canada Tax Zone, add the relevant regions, and attach the manual tax rates you want to apply for customers in that zone.

How tax rates apply

• You can attach existing user-defined tax rates to a zone.
• You can add up to 10 tax rates per zone.
• If a tax rate is attached to both the product and the zone, it applies at checkout (the product + zone intersection).
• For regions not included in any zone, all rates attached to the product apply without zone filtering.
• If a zone has no tax rates, customers in that zone are not charged taxes (from manual taxes).
• Deleting a tax rate from a zone removes it only from that zone (it does not delete the tax rate itself).

Automatic taxes and manual taxes

• Automatic Taxes take priority when they are available for the country and product combination.
• Manual tax rates in Tax Zones apply only when Automatic Taxes are disabled or unavailable.

Where to find it

Payments → Settings → Taxes → Manual Taxes

From there you can:

• Create and manage manual tax rates
• Create Tax Zones
• Select the countries/states for each zone
• Attach existing manual tax rates to a zone
• Review and update the rates configured for each zone

What’s next

We will continue expanding Manual Taxes to support more flexible regional tax configurations.