Sales Tax Setup

Shopify calculates; you are still responsible

Shopify can calculate and charge sales tax at checkout based on your settings. It does not decide what you owe or file returns for you in most cases. You are responsible for registering where required, collecting correctly, and sending tax to the government. Rules depend on your state, what you sell, and where buyers live.

Setting up tax regions

In Settings > Taxes and duties, you tell Shopify where you are registered to collect tax. Shopify uses that to apply rates. In Ohio, sellers of taxable goods generally need a vendor's license; see the Licenses & Permits lesson and the official Ohio Department of Taxation link on the Business Registration & Official Resources page.

Records and reports

Shopify has reports showing the tax you collected. Download them regularly and keep them with your bookkeeping. Set aside collected tax so it is not spent; it is not your income.

When to get help

If you sell in several states, sell digital products, or are unsure whether your items are taxable, check your state tax agency and consider a tax professional.

Steps to take

1. Learn whether your items are taxable where you sell.
2. Register with your state where required.
3. Add your registrations in Shopify's tax settings.
4. Run a test order and check the tax charged.
5. Download tax reports regularly and set the money aside.

Go deeper in related modules

Not sure what a word means? Check Business Words Made Simple.

• Finances: Tax Overview — sales tax basics
• Business: Licenses & Permits — Ohio vendor's license
• Finances: Bookkeeping

Official guidance

Use these official sources for current rules and details. They do not replace advice for your particular business.

• Shopify Help: Taxes (opens in a new tab)

  Official guide to Shopify tax settings and reports.

• Ohio Department of Taxation: Sales and use tax (opens in a new tab)

  Official Ohio sales tax information.