thread Why is the online store tax higher than what was manually set? in Payments Troubleshooting

Why is the online store tax higher than what was manually set?

therockinghorse — Sat, 20 Sep 2025 13:09:20 GMT

Since the automatic tax calculator on the online store is not calculating our specific store location taxes correctly, I made a manual tax at 8.75% percent for 'California' using the 'instead' rule. At checkout it charges 10% for tax. I've also tried adding 'California' with 1.5% using the 'add' rule, which should take the 7.25% country rate and add 1.5%, to my understanding. What is going on? Please advise.

Re: Why is the online store tax higher than what was manually set?

AshleyK — Sun, 31 May 2020 19:27:04 GMT

Hi @therockinghorse I'm so sorry to read that this is happening and definitely want to dig deeper into this issue with you. The tax should apply exactly at 8.75% so I'm wondering if you have some discounts applying or multiple taxes enabled that could be causing the numbers to be different than what we expect.

Would you be able to share a screenshot of a receipt so I can take a closer look? Please remember to blur out the customer's name and card information before uploading it. Thank you!

Re: Why is the online store tax higher than what was manually set?

therockinghorse — Sat, 06 Jun 2020 19:55:07 GMT

Below is a screenshot of a sample checkout.

I've included the tax settings to make sure it was put in correctly.

Re: Why is the online store tax higher than what was manually set?

AdamB — Mon, 08 Jun 2020 16:05:36 GMT

Thank you for the screenshot, @therockinghorse. If you enable the "do not charge local taxes" option when editing the tax rate, does that change the amount of tax it charges?

Re: Why is the online store tax higher than what was manually set?

therockinghorse — Wed, 17 Jun 2020 19:45:05 GMT

That’s it! Issue solved. I didn’t even see that option there. Thank you so much.