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How To Customize The Tax Settings in Your Payments Section
Apply product taxes, configure global rules, and (for US sellers) enable automatic tax calculation so invoices and order forms show accurate totals and clear breakdowns.
Applying Taxes Correctly Without Manual Adjustments
When selling products or services, it can be difficult to apply the correct tax rates across different items and customer locations.
Tax settings allow you to define rates, apply them globally or per product, and control how taxes appear on invoices and checkout experiences.
Without a clear setup, taxes may be calculated incorrectly, leading to inaccurate totals or confusion for customers reviewing their charges.
This guide will walk you through how to configure tax settings so your invoices and order forms display accurate and consistent totals.
To begin, review what tax settings control and how they apply across your payments system.
What Tax Settings Control
Tax settings determine how taxes are applied to products and how tax totals appear on invoices, order forms, payment links, and checkout experiences.
- Set up and manage tax rates in Payments → Settings → Taxes
- Apply tax globally or override tax rules per product in Payments → Products
- View tax totals and breakdowns inside the Order Summary
Step 1: Access Tax Settings
- Go to Payments → Settings → Taxes.
- Create new tax rules (or edit existing ones).
- Use invoices or order forms to confirm taxes display correctly after setup.
Follow along: Payments → Settings → Taxes.
Step 2: View Tax Totals and Breakdowns
- Invoices and order forms show taxes in a dedicated tax column (cumulative totals).
- The Order Summary provides a detailed breakdown of what was applied.
- Hover tooltips may reveal additional details depending on view/layout.
Tip: If totals look off, confirm the product is set to charge tax and that the correct tax rate/category is selected.
Step 3: Apply Taxes to Products
- Go to Payments → Products.
- Select the product you want to update.
- Enable Charge Tax on This Product.
- Select the applicable tax rate(s) from the dropdown.
- Choose whether the product is tax-inclusive or tax-exclusive (if available for your setup).
Heads up: Product-level settings can override global defaults, which is useful for special cases.
Step 4: See Taxes on Invoices and Order Forms
When you add taxed products to an invoice or order form, the configured tax rate applies automatically.
- A dedicated column shows the cumulative tax total per line item (when supported).
- The Order Summary shows the full tax breakdown for the customer.
Step 5: Update or Delete Tax Rates
- Updating tax settings helps keep your rates current—changes apply to future checkouts/invoices.
- Deleting a tax rate removes it from any products using it.
- After deleting a rate, review affected products and select a replacement tax setup.
Reminder: Issued invoices typically keep the original tax values they were created with.
Automatic Tax Calculation (US Sellers)
If you sell in the US, you may be able to enable automatic tax calculation so checkout taxes are computed dynamically based on customer address and product category.
- Go to Payments → Settings → Taxes.
- Enable Automatic Tax Calculation.
- Select your nexus address/states where you collect tax.
- Set a default product tax category (override per product as needed).
Applies to: Invoices, order forms, online stores, and payment links (when supported by your setup).
Pro Tips
- Default first: Set a global default tax category to reduce setup time.
- Override when needed: Use product-level overrides for special tax rules.
- Verify at checkout: Check the Order Summary for the most reliable breakdown.
- International sellers: Use manual VAT/GST rates and review for accuracy.
Want cleaner checkout totals and fewer billing questions?
When taxes are set correctly, invoices and order forms look professional—and customers trust the totals.
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Frequently Asked Questions
How is tax displayed on invoices and order forms?
A dedicated tax column shows the cumulative total, and the Order Summary provides the detailed breakdown.
Can I set different tax rates for individual products?
Yes. Configure taxes per product in Payments → Products or globally in Payments → Settings → Taxes.
What happens if I delete a tax rate?
Deleting a tax rate removes it from products that use it. Review your products and apply a replacement rate if needed.
How does automatic tax calculation work?
For US sellers, taxes calculate dynamically at checkout using the customer’s address and product tax category.
Can I adjust tax settings after an invoice is created?
Yes, but changes apply to future invoices only. Existing invoices retain their original tax settings.
Keep Taxes Accurate Across Products and Invoices
Use global rules for speed, product-level overrides for special cases, and automatic tax calculation (US) to keep checkout accurate and consistent.
Clear totals. Better trust.
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