Automatically calculate US sales tax

Sales tax rates in the United States vary by state and city. Using our integration with TaxJar, your store can calculate sales tax automatically at checkout based on a customer’s shipping or billing address. The integration uses TaxJar’s real-time sales tax data.

This is a beta integration, which means the functionality is limited. We’ll be adding features over time, and we’d love to hear your feedback.

We're releasing this beta integration in waves to all sites on the Commerce Basic and Advanced plans. If you don't see this option, the experience isn't available for your site yet.

Note: This guide is available as a resource, but should not be construed or relied upon in any way as legal or tax accounting advice. Per our Terms of Service, Squarespace doesn't provide advice or recommendations regarding laws applicable to your site or business. If you have questions about collecting taxes, you can consult with a tax advisor.

Who should participate in the beta

This beta integration is designed for merchants who sell within the United States, and whose products are taxed at a standard rate.

You should not participate in the beta if you sell:

• Products that are tax exempt
• Products that are taxed at nonstandard rates
• Service products that are taxed

The beta integration doesn’t apply sales tax to service products or recognize product categories that have special tax rates. We plan to support these features in the near future. Currently, shoppers buying physical and digital products will be charged the standard sales tax in their location, regardless of what you’re selling.

If you’re not sure whether the products you sell are taxed at a standard rate, consult a tax professional. You may also find TaxJar’s resources helpful.

Limitations

• This feature doesn’t charge sales tax for service products.
• It’s not possible to set manual tax rules for US locations while automatic rates are enabled.
• All orders for physical and digital products will charge sales tax at the standard rate regardless of what you’re selling.
• Subscription products renew at the same tax rate used in the initial order, even if the standard rate changes over time.
• This feature only works for sales in the United States. Set additional tax rules for international orders.
• This integration is only available for new TaxJar users. If you have an existing TaxJar account, you can join the waitlist.

Enable automatic rates

To automatically calculate sales tax at checkout:

1. In the Home Menu, click Commerce, then click Taxes.
2. If you’ve never created tax rules before, click Get started, then click Automatic.
3. If you’re switching to automatic rates, click Automatic rates, then click Check Eligibility.
4. Answer the questions on the screen. You shouldn’t enable automatic rates if you sell physical products that are taxed at nonstandard rates, or service products that are taxed.
5. Click Connect.
6. Click Allow.
7. Create a TaxJar account and click Get Started. If you already have a TaxJar account, join the waitlist.

After creating an account, add your registered states in TaxJar where you will charge sales tax. These are states where you have nexus.

1. Click Add State Registrations.
2. Enter the state information.
3. If you have a physical address in the state, click Yes.
4. Click Save & Add another.
5. Repeat these steps for each state where you will charge sales tax.
6. Go back to the Taxes panel in Squarespace, and switch the toggle on beside Enable automatic rates.

After you enable automatic rates, all orders from states you registered in TaxJar will charge sales tax at the standard rate in the customer’s location.

Any existing US tax rules you created will be disabled. To use your original tax rules, disable automatic rates.

How sales tax is calculated at checkout

When a customer checks out, the sales tax is calculated after they enter their shipping address (or the billing address for digital products). The order total adjusts to reflect the tax rate for their location.

Charge sales tax for international orders

This feature only charges sales tax for orders in the United States. To charge sales tax for international orders:

1. In the Home Menu, click Commerce, then click Taxes.
2. Click International.
3. Follow the steps in Setting up taxes in Squarespace Commerce to complete the process.

Disable automatic rates

To disable automatic rates:

1. In the Home Menu, click Commerce, then click Taxes.
2. Switch off the toggle beside Use automatic rates.
3. Click Save.

All tax rules you created before switching to automatic rates will be turned back on.

FAQ

Where should I collect sales tax?

You should collect sales tax in states where you have nexus. This includes states where you have a physical location, and possibly other states where you make sales, depending on the local laws. To learn more, contact a tax professional. You might also find TaxJar’s documentation helpful.

Where does the tax data come from?

Your store calculates sales tax automatically using TaxJar’s real-time sales tax data. If you have questions about the tax rates your store is charging, contact TaxJar.

Why didn’t my store charge sales tax?

Your store won’t charge sales tax after you enable automatic rates if an order:

• Is outside the United States and you haven’t set up international tax rules
• Is in a US state you haven’t registered in TaxJar.
• Includes a service product

Where can I learn more about charging sales tax?

The best way to learn about your sales tax obligation is to consult with a tax advisor who understands your business. These TaxJar resources may also be helpful as an introduction:

• I’m brand new to sales tax
• Sales tax 101
• How do I know where I have nexus?
• Product taxability

Who do I contact for support?

For help enabling this integration or setting up your online store, contact us. You can also give feedback about the beta integration.

For questions about sales tax, rate calculation, or changing your TaxJar settings, contact TaxJar.