Tax Classes

Tax Classes allow administrators to create and manage tax categories used by products in the iShop storefront. A tax class defines whether a product is taxable, what base tax rate is applied, and whether the tax class is available for product selection.

Tax classes are used when configuring product sales settings. If no tax class is selected on a product, the default tax class may be applied.

Overview

The Tax Classes screen is used to manage tax categories for U.S. sales, including taxable, non-taxable, and base tax rate settings. These settings help the system determine how tax should be applied to products during checkout.

Area	Description
Tax Class List	Displays all tax classes with name, taxable status, rate, default status, and active status.
New	Opens the tax class creation screen.
Tax Class Editor	Used to create or edit tax class details.

Tax Class List

The Tax Class List displays the tax classes registered in the system. Administrators can review each tax class and manage whether it is taxable, default, and active.

Column	Description
ID	The internal tax class identifier.
Name	The tax class name shown in product settings.
Taxable	Shows whether products using this tax class are taxable.
Rate	The base tax rate percentage.
Default	Shows whether this tax class is applied by default when no tax class is selected.
Active	Shows whether this tax class is available for selection.

Create a New Tax Class

Click + New to create a new tax class.

Open Admin > iShop > Tax.
Click + New.
Enter the tax class name.
Select whether the class is taxable.
Enter the base tax rate percentage.
Choose whether this tax class should be the default.
Choose whether this tax class should be active.
Enter an optional memo.
Click Save.

Tax Class Editor Fields

Field	Description
Name	The display name of the tax class. Example: `General Merchandise`.
Taxable	Determines whether products assigned to this class are taxable.
Rate (%)	The base tax rate percentage used before any regional or automatic tax calculation.
Default	If selected, this tax class is applied when no tax class is selected on the product.
Active	If enabled, this tax class appears in the product tax class selection list.
Memo	Optional internal description or note for administrators.

Name

The Name field identifies the tax class in the system. Use a clear name that describes the tax purpose or product group.

Examples:
General Merchandise
Non-Taxable
Clothing
Food
Digital Goods
Services

Use names that administrators can easily recognize when assigning tax classes to products.

Taxable

The Taxable field determines whether this tax class applies tax to products.

Value	Meaning
Yes	Products using this tax class are taxable.
No	Products using this tax class are treated as tax-exempt.

Set Taxable to No for tax-exempt items.

Rate (%)

The Rate field defines the base tax rate percentage. This value is used before regional automatic calculation, depending on how the tax system is configured.

Examples:
0.00
4.00
7.25
8.875

Enter only the numeric percentage value. Do not include the percent symbol.

Correct:
7.25

Avoid:
7.25%

Default

The Default option determines whether this tax class is automatically applied when no tax class is selected on a product.

If checked, this tax class may be used as the fallback product tax class.
If unchecked, it is only applied when selected manually.

Usually, only one tax class should be used as the default.

Active

The Active option controls whether the tax class appears in the product tax class selection list.

If checked, the tax class is available for product selection.
If unchecked, the tax class is hidden from product selection.

If a tax class should no longer be used, deactivate it instead of deleting it immediately.

Memo

The Memo field is optional. Use it to record internal notes about the tax class.

Examples:
Used for standard taxable products.
Used for tax-exempt products.
Used for digital products only.
Review rate before next tax update.

How Tax Classes Are Used on Products

Tax classes are selected in the product editor under product sales, shipping, or tax settings. When a customer places an order, the product tax class helps determine whether tax should be calculated.

Create the required tax classes.
Open a product in Product Management.
Select the appropriate Tax Class.
Save the product.
Test the product in checkout to confirm tax behavior.

Common Use Cases

Use Case	Recommended Setup
Standard taxable products	Create a taxable tax class with the appropriate base rate.
Tax-exempt products	Create a tax class with Taxable set to No and rate set to 0.00.
Default product tax behavior	Mark the most commonly used tax class as Default.
Temporarily stop using a tax class	Uncheck Active so it no longer appears in product selection.
Separate product groups	Create separate tax classes for products that require different tax handling.

Recommended Workflow

Identify the product tax categories needed for the store.
Create a default tax class for normal taxable products.
Create a non-taxable class if tax-exempt products exist.
Enter the base tax rate as a numeric percentage.
Set one tax class as Default if needed.
Keep only usable tax classes Active.
Assign tax classes to products.
Test checkout to confirm the tax calculation.

Important Notes

Tax rules vary by location, product type, and business requirements.
The Rate field is a base rate and may be used before regional automatic calculation.
Only active tax classes appear in product selection.
If no tax class is selected on a product, the default tax class may be applied.
Incorrect tax settings can affect checkout totals.
Always test tax behavior before launching the store.

Best Practices

Use clear tax class names.
Keep one default tax class unless the system specifically supports multiple defaults.
Use a non-taxable tax class for tax-exempt items.
Do not delete tax classes that may be connected to existing products or past orders.
Deactivate unused tax classes instead of deleting them.
Review tax settings regularly when business rules or tax rates change.

Tax Classes are important for checkout accuracy. Review tax configuration carefully and confirm calculations with test orders.