U.S. Tax Guidelines | Adobe Commerce 2.3 User Guide (Archived)

U.S. Tax Guidelines

This site contains archived merchant documentation for a version of Adobe Commerce and Magento Open Source that has reached end-of-support. The documentation available here is intended for historical reference only and is not maintained. The Adobe Commerce Merchant Documentation for current releases is published on the Adobe Experience League.

These recommended settings can be used for most tax configurations for stores within the United States.

Tax Classes

Tax Class	Recommended Setting
Tax Class for Shipping	None

Calculation Settings

Calculation	Recommended Setting
Tax Calculation Method Based On	Total
Tax Calculation Based On	Shipping Origin
Catalog Prices	Excluding Tax
Shipping Prices	Excluding Tax
Apply Customer Tax	After Discount
Apply Discount on Prices	Excluding Tax

Default Tax Destination Calculation

Setting	Recommended Setting
Default Country	United States
Default State	State where business is located.
Default Post Code	The postal code that is used in your tax zones.

Price Display Settings

Setting	Recommended Setting
Display Product Prices in Catalog	Excluding Tax
Display Shipping Prices	Excluding Tax

Shopping Cart Display Settings

Setting	Recommended Setting
Display Prices	Excluding Tax
Display Subtotal	Excluding Tax
Display Shipping Amount	Excluding Tax
Display Gift Wrapping Prices	Excluding Tax
Display Printed Card Prices	Excluding Tax
Include Tax in Grand Total	Yes
Display Full Tax Summary	Yes
Display Zero Tax Subtotal	Yes

Orders, Invoices, Credit Memos, Display Settings

Setting	Recommended Setting
Display Prices	Excluding Tax
Display Subtotal	Excluding Tax
Display Shipping Amount	Excluding Tax
Include Tax in Grand Total	Yes
Display Full Tax Summary	Yes
Display Zero Tax Subtotal	Yes

Fixed Product Taxes

Setting	Recommended Setting
Enable FPT	No, except in California.