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What is the difference between 'Tax Zones' 'Tax Rates' and 'Tax Classes'?

This is primarily for store owners that need to charge multiple tax rates.

Tax Rate:
This is the true percentage rate of the tax that will be applied. In order to successfully set new 'tax rates' you will first need to set various 'tax zones' (explained below).

Tax Zones:
Tax Zones are required to set a new tax rate properly. Say I live in a state that has multiple tax zones based on county. You would first create all of the tax zones you need to accommodate for in the 'Tax Zone' area. Then you would move the the 'Tax Rate' and press 'new tax rate'. In the dropdown for 'Zone' you would pick the zone you just created. Insert the tax rate and press 'insert'.


Now at time of checkout the customer will be associated with the proper zone based on their state.

Tax Classes:
Tax classes would be for different products. For instance, if you sold food products, they may have a different tax rate than a guitar.