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Set up tax settings (US only)

So that users understand the exact price that they’ll have to pay for a product, you must submit the taxes that you collect. This article helps you understand how to correctly set up your tax settings. Learn more about how tax settings work and when to use them.

Before you begin (US only)

Keep in mind that you’ll set up tax rates for each United States state that you charge taxes for. Typically, these are the states that your business has nexus in. If your products target the United States, but you don’t charge taxes in the United States, still indicate that in your tax settings. 

You can choose from the following options to determine tax in each state. Consult your tax advisor to understand which options would work best for you.

  • Use the manual option to enter a flat rate if you charge all customers the same amount of tax regardless of where they're located. 
  • Use the destination-based option if you charge taxes based on where your customer is located. You can indicate whether you have nexus in all cities and counties, or manually select specific cities and counties in states with sub-state nexus. 
  • Use the tax-categories attribute if you sell products in a state with a tax rate that differs from standard sales tax rates. For example, food or apparel may not be taxed in some states or may be taxed at a lower rate than other products. Learn more about tax categories
  • Configure state, county, and city tax rates if you sell products in home rule states.
  • Use the tax attribute if you collect a non-standard tax rate for a product or a product is exempt from tax.

Instructions (US only)

Use account settings for standard tax rates

To set up taxes, you’ll set taxes for each state where you charge taxes:

  1. Sign in to your Merchant Center account.
  2. Click Tax in the page menu.
  3. If you’re setting up taxes for the first time, you’ll see 3 options:
    1. Don’t configure tax at the account level. Select this if you charge taxes in the United States, but set up tax only through the tax attribute.
    2. Configure no nexus for all states. Select this if you don’t charge taxes in the United States.
    3. Configure tax and set up nexus. Select this if you do charge taxes in the United States.

Tip

If you want to switch to one of these options in the future, click Change in the upper right to see these 3 options again.

  1. Click Continue.
  2. If you choose to configure tax and set up nexus:
    1. Click Add state, and select the states where you charge tax.
    2. Next set the tax rate for each state. So click a state, and then choose the Tax rate:
      • Destination-based to let Google estimate the rate for destination-based states.
      • Manual to enter a specific rate. You may want to consider this option for origin-based states or if you want to enter a custom rate.
    3. If you select a home-rule state, select a Nexus preference:
      1. Select nexus for all counties and cities within the state
      2. Manually select counties and cities within your state
        Note: You may only configure granular nexus if you use the destination-based tax rate option. In this case, Google determines the tax rate based on available sales tax regulations, the location of the customer, and your nexus configuration. If you have custom tax rates for a state and don’t want Google to calculate sales tax, select the “manual” option. 
    4. If you charge tax on shipping, select Tax on shipping.
    5. Click Save once you’ve added taxes for the state.

Set up tax categories

  1. Sign in to your Merchant Center account.
  2. Click Tax in the page menu.
  3. Click the Categories tab. 
  4. Click the plus button to add a new tax category.
  5. Enter the name of the tax category. Or, if you’ve already entered values into the  tax_category attribute in your feed, the values will be pre-populated. Note: You may add up to 100 categories. 
  6. For each state in your tax settings, enter the appropriate tax rate under the category column. If no custom rate is needed, leave this field blank.

Use an attribute for non-standard tax rates

If you have one product that has a different tax rate or that’s tax exempt, and you are unable to configure tax rates using manual or destination-based rates, tax categories, or home rule nexus, submit the tax attribute for that product. 
The value that you submit for the tax attribute will override any account tax settings for that product. 

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