How to set up sales tax calculations in Shopify using Shopify Tax

Last reviewed September 30, 2026.

Before you begin collecting taxes, determine where your business has nexus and complete the required state registrations. Adding a state in Shopify does not register your business with that state. You can read more about nexus here.

What is Shopify Tax?

Shopify Tax helps calculate sales tax at checkout based on your tax settings, product categories, and order details. For US sales, you configure collection for the states where you are registered. Review your setup and product categories so exemptions and taxable items are handled correctly.

How much does Shopify Tax cost?

For US stores, Shopify Tax pricing depends on the store's creation date:

• Stores created before May 13, 2026: $100,000 in global sales each calendar year. Fees are capped at $0.99 per order and $5,000 annually per region.
• Stores created on or after May 13, 2026: $100,000 in lifetime global sales. Fees are capped at $0.99 per order. Shopify does not list an annual cap for this group.

After the threshold, US calculation fees are 0.35% on Basic, Grow, and Advanced, or 0.25% on Shopify Plus. Eligible orders can incur fees even when product exemptions result in no tax being charged.

The threshold includes global sales, connected channels, POS, gift cards, non-taxable products, taxes, and shipping. It is not limited to taxable US sales.

These are calculation fees, separate from registration and filing services. Different currencies, regional rates, and large-store pricing can apply. Check Shopify's current pricing documentation for your store.

Does Shopify Tax file my returns?

Turning on tax calculations does not automatically arrange your registrations or returns. Shopify Tax automated filing is currently closed to new enrollment. Stores already enrolled can continue using it subject to Shopify's eligibility requirements. Stores that are not enrolled need to arrange another filing method.

You can keep Shopify Tax for calculations and use BreezyFile for state registrations and sales tax filings. See Shopify's automated-filing eligibility guidance.

How do I set up US tax collection?

1. Open Settings > Taxes and duties in Shopify and confirm your US tax service is Shopify Tax.
2. Under Manage sales tax collection, select United States.
3. Use Add new state or Collect taxes, depending on the setup shown in your admin. Select a state where you are registered and enter your sales tax ID.
4. Review the applicable shipping-tax options, then select Collect taxes. Repeat for your other registrations.

Review product categories, exemptions, and sample orders before relying on the results. Arrange your filing schedule separately.

For current screen labels and instructions, see Shopify's US tax setup guide and US tax management guide.

You can also learn how to view your Shopify sales tax reports before preparing your returns.

Need help with registrations and filings?

BreezyFile works alongside Shopify Tax to handle state registrations and sales tax returns, with US-based support. Pricing is $75 per filing and $150 per registration.

Built for Shopify. Rated 5.0 from 28 reviews as of September 30, 2026.

View BreezyFile and current reviews on the Shopify App Store.