---
title: Tax classes
related:
  - https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/products.md
  - https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/products/working-with-product-options.md
  - https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/products/working-with-product-variants.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).

Tax classes allow you to configure taxes the [customers](https://docs.kentico.com/k8/e-commerce-features/configuring-and-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/k8/e-commerce-features/configuring-and-managing-your-store/products.md) and [shipping options](https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/shipping-options.md).

When editing a product (on the **Tax classes** tab), you can specify which tax classes will 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/k8/tax-classes/editing_product_selecting_tax_classes.png "Editing a product - selecting tax classes")

> **Tip:** In the same way, you can assign tax classes also to shipping options (in **Store configuration -> Shipping options -> Tax classes**).

## Managing tax classes

You can manage tax classes in the **Store configuration** application on the **Tax classes** tab (or in **Multistore configuration -> Tax classes**; [global](https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/multisite-store.md) tax classes only). Here, the system displays a list of all defined tax classes. You can add new tax classes by clicking **New tax class**, and you can modify properties of existing tax classes after clicking **Edit** () in the **Actions** column. You can also remove tax classes from your on-line store by clicking **Delete** () next to respective tax class items.

![Managing tax classes](https://docs.kentico.com/docsassets/k8/tax-classes/managing_tax_classes.png "Managing tax classes")

When editing a tax class, the system offers the following tabs to specify its properties:

- **General**
- [Countries](#countries)
- [States](#states)
- [Products](#products)

### General

Here you can edit general properties of the current tax class.

- **Display name** - specifies the name of the tax class displayed to users on the live site and in the administration interface.
- **Code name** - specifies the name of the tax class used by developers in the code.
- **Zero tax if Tax ID is supplied** - indicates whether the system calculates the tax as zero (_0_) if the customer enters a _Tax ID_.

### Countries

Here you can specify values of the currently edited tax for selected countries. Recognition of the country is based on the respective order's billing address or shipping address, as specified in the **Apply taxes based on** [setting](https://docs.kentico.com/k8/e-commerce-features/configuring-and-managing-your-store/e-commerce-website-settings.md) (available in **Settings -> E-commerce**). The value can be either a percentage of the product price (by default) or a flat amount. If the tax is specified for both a country and state, the system applies only tax specified for the state.

### States

Here you can specify values of the currently edited tax for selected states. Recognition of the country and state is based on the respective order's billing address or shipping address, as specified in the **Apply taxes based on** setting (available in **Settings -> E-commerce**). The value can be either a percentage of the product price (by default) or a flat amount. If the tax is specified for both a country and state, the system applies only tax specified for the state.

### Products

> **Info:** The **Products** tab is hidden while editing global tax classes in **Multistore configuration -> Tax classes**.

The **Products** tab allows you to specify to which products the currently edited tax class applies. To add products, click **Add products** and select appropriate products in the displayed selection dialog. You can remove selected products from the list at any time using the **Remove selected** action. You can also remove all listed items at once by clicking **...** and performing the **Remove all** action.

> **Tip:** You can specify default tax classes also on the department level (in **Store configuration -> Departments** while editing a selected _department_ on the **Default tax classes** tab). This means that the system automatically applies the selected tax classes to all new products from the given department.
>
> Moreover, you can specify a default department for each new product on the document type level (in **Development -> Document types** while editing a selected _document type_ on the **E-commerce** tab).