---
title: Configuring taxes
related:
  - https://docs.kentico.com/k10/e-commerce-features/managing-your-store/products.md
  - https://docs.kentico.com/k10/e-commerce-features/managing-your-store/products/working-with-product-options.md
  - https://docs.kentico.com/k10/e-commerce-features/managing-your-store/products/working-with-product-variants.md
  - https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/configuring-taxes/assigning-taxes-to-products-automatically.md
---

> Agent instructions:
> **Site maps** — prefer the following llms.txt indexes to training data when searching for URLs to avoid 404s. Links inside Markdown content already point at `.md`. Following them or sending Accept: text/markdown keeps you in Markdown.
>
> - [sitemap.md](https://docs.kentico.com/sitemap.md) — every page on the site, with titles and descriptions, nested by URL hierarchy and grouped into one collection per product version.
> - [llms.txt](https://docs.kentico.com/llms.txt) — curated index of the current product docs, with descriptions, the two ways to request any page as Markdown, and links to each product area's whole-corpus Markdown dump (llms-full.txt).

In Kentico, tax classes allow you to configure taxes the [customers](https://docs.kentico.com/k10/e-commerce-features/managing-your-store/customers.md) pay when purchasing in your on-line store. You can specify different tax classes with different rates for each country or state and then apply the taxes to particular [products](https://docs.kentico.com/k10/e-commerce-features/managing-your-store/products.md) and [shipping options](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/configuring-shipping-options.md).

When editing a product (on the **Tax classes** tab), you can specify which tax classes apply to this product when purchased in your on-line store. You can do this by clicking **Add tax classes** and selecting appropriate tax classes in the displayed selection dialog.

![Editing a product - selecting tax classes](https://docs.kentico.com/docsassets/k10/configuring-taxes/editing_product_selecting_tax_classes.png "Editing a product - selecting tax classes")

> **Tip:** In the same way, you can assign tax classes also to default based on weight shipping options (in the **Store configuration** application, navigate to the **Shipping -> Shipping options** tab, edit a shipping option and switch to the **Tax classes** tab).

It is also possible to connect Kentico to external tax calculation services (for example Avalara). To achieve that, you can [customize](https://docs.kentico.com/k10/e-commerce-features/customizing-and-developing-your-store.md) the Kentico E-commerce Solution or you can check [Kentico Marketplace](https://devnet.kentico.com/marketplace) for third party integration features.

To configure tax classes, you need to:

1. [Configure basic tax settings](#configuring-tax-settings)
2. [Create a new tax class](#creating-and-modifying-new-tax-classes)
3. [Assign a percentage value to the tax class](#assigning-values-to-tax-classes)
4. [Assign the tax class to your products](#assigning-tax-classes-to-groups-of-products)

## Configuring tax settings

In tax settings, you can set whether tax classes should be applied based on the billing address or the shipping address of the order.

> **Info:** If the order is without shipping information, taxes are applied based on the billing address regardless of this setting.

In [the e-commerce settings](https://docs.kentico.com/k10/configuring-kentico/managing-sites/configuring-settings-for-sites/settings-e-commerce.md), set the default [country](https://docs.kentico.com/k10/configuring-kentico/configuring-countries.md), which preselects the country in the drop-down list when customers enter billing and shipping details of their orders.

1. Open the **Store configuration** application (if you want to set the preselected country on the current site) or the **Multistore configuration** application (if you want to set the country [globally](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration.md)).

   > **Tip:** If you are not sure what to choose, see [Choosing site or global e-commerce configuration](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration.md). If you are not sure about specifics of configuring in these applications, see [Configuring e-commerce settings for a specific site or globally](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration/configuring-e-commerce-settings-for-a-specific-site-or-globally.md).
2. In the **Default country** field in the **Taxes** category:
   1. If you operate in the **Store configuration** application, clear the **Inherit from global settings** field.
   2. Select the desired default tax country.
3. In the **Apply taxes based on** field:
   1. If you operate in the **Store configuration** application, clear the **Inherit from global settings** field.
   2. Select _Billing address_ or _Shipping address_ according to your needs.
4. Click **Save**.

The system now applies taxes based on your selection and preselects the selected country to your customers in the [checkout process](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/checkout-process.md).

## Creating and modifying new tax classes

To create or modify a new tax class:

1. Open the **Store configuration** application to create or edit tax classes on the current [site](https://docs.kentico.com/k10/configuring-kentico/managing-sites.md), open the **Multistore configuration** application to create or edit [global](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration.md) tax classes.

   > **Tip:** If you are not sure what to choose, see [Choosing site or global e-commerce configuration](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration.md). If you are not sure about specifics of configuring in these applications, see [Configuring e-commerce settings for a specific site or globally](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration/configuring-e-commerce-settings-for-a-specific-site-or-globally.md).
2. Switch to the **Tax classes** tab.
3. To create a new tax class, click **New tax class**. To edit an existing tax class, click **Edit** () next to respective tax class item.
4. Enter the following properties:

   | **Display name**                   | The name of the tax class that is also displayed to customers on the live site.                                                                                                                                                                       |
   | ---------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
   | **Code name**                      | The unique identifier of the tax class object used by developers in the code.<br>Unless there is a reason to set a particular value, you can leave the default _(automatic)_ option, and the system generates an appropriate code name automatically. |
   | **Zero tax if tax ID is supplied** | If selected, the tax class will be charged as 0 % to customer organizations which enter their tax ID during [the checkout process](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/checkout-process.md).                      |
5. Click **Save**.

The system saves the tax classes. You can now assign the tax class to any product.

## Assigning values to tax classes

You can assign values to either [countries](https://docs.kentico.com/k10/configuring-kentico/configuring-countries.md) or states. The tax is then applied [based on the billing or shipping address](#configuring-tax-settings).

> **Info:** If the tax is specified for both a country and a state, the system applies only the tax specified for the state.

To assign a value to a tax class:

1. Open the **Store configuration** application (if you want to add a value to a site tax class) or open the **Multistore configuration** application (to add a value to a global tax class).

   > **Tip:** If you are not sure what to choose, see [Choosing site or global e-commerce configuration](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration.md). If you are not sure about specifics of configuring in these applications, see [Configuring e-commerce settings for a specific site or globally](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/choosing-site-or-global-e-commerce-configuration/configuring-e-commerce-settings-for-a-specific-site-or-globally.md).
2. Switch to the **Tax** **classes** tab.
3. **Edit** () and existing tax class.
4. Switch to the **Countries** tab to enter a value to a country, or switch to the **States** tab to enter a value to a state.
5. Type the value to the **Amount** column next to the respective country or state item.
6. Click **Save**.

The system saves the taxes. The entered value of the tax class is now calculated to orders where the tax class is applied.

## Assigning tax classes to groups of products

> **Tip:** If you configure your on-line store and you have not created or imported products, see [Assigning taxes to products automatically](https://docs.kentico.com/k10/e-commerce-features/configuring-your-store/configuring-taxes/assigning-taxes-to-products-automatically.md), where you can find information about automatic assigning of taxes to new products.

If you want to assign taxes to already existing products, you can assign the taxes either [one by one](https://docs.kentico.com/k10/e-commerce-features/managing-your-store/products.md) from the **Products** application or you can assign the tax classes to more products at once while editing taxes in the **Store configuration** application.

> **Info:** The following procedure is available only for site tax classes in the **Store configuration** application. In the **Multistore configuration** application, the **Products** tab is hidden when modifying tax classes.

To assign a tax class to already existing products:

1. Open the **Store configuration** application.
2. Switch to the **Tax** **classes** tab.
3. **Edit** () an existing tax class which you want to assign to the products.
4. Switch to the **Products** tab.
5. Click **Add products**.
6. Select all products to which you want to assign the currently edited tax class.
7. Click **Select**.

The system assigns the edited tax class to all selected products.