Shopify Tax

Shopify Tax is built right into your store's admin, making it easy to get started collecting sales tax. For more details on how to use Shopify Tax, read this blog post.

Remember, it's your responsibility to consult with local tax authorities or a tax professional to verify that you're collecting the correct tax rates from your customers and to ensure you file and remit your taxes correctly.

Shopify Tax is free on your first $100,000 of lifetime sales. After $100,000, a 0.35% calculation fee (0.25% for Shopify Plus merchants) will be charged on orders destined to states where you've activated tax collection.

For example:

• You're a merchant who sells a $30 USD t-shirt in a state where you collect sales tax. You'll be charged a calculation fee of $0.11. (If you use Shopify Plus, you'll be charged $0.08 instead of $0.11.)
• The same merchant sells a $30 USD t-shirt to a state where they do not collect sales tax. There is no calculation fee.

The pricing information described above applies to stores that were created on or after May 13, 2026, and have less than $25,000,000 USD in sales per year. If your store was created before this date, then refer to Shopify Tax pricing for stores created before May 13, 2026. If your lifetime sales are above $25,000,000 USD, or the equivalent in your local currency, then contact your Customer Success Manager (CSM) for pricing.

Shopify Tax is the most popular service among Shopify merchants because it offers the highest level of compliance with little upkeep.

Shopify also offers Manual Tax, which allows you to set your own tax rates.

This service is free, but you're required to keep rates up to date—or you risk exposing yourself to sales tax liability in US jurisdictions. For example, you won't have access to precise, address-based sales tax calculations or automatic product-specific rates and exemptions. You'll have to keep track of your liabilities and rate or regulation changes on your own and make updates manually.

You can also use an approved third-party tax service via the Tax Platform. For more information about your options, visit the Shopify Help Center or the Taxes and duties section of your Shopify admin.

If you use Vertex or Avalara via Tax Platform or are using Drinks.com, the third-party tax service will manage tax calculation. Shopify Tax will be automatically disabled and you will not pay for Shopify Tax.

Third-party services available on the Shopify App Store that manage registration and tax filing can integrate with Shopify Tax. Today, Shopify Tax provides you with sales tax liability insights, sales tax calculations, collection, and reporting. You can use a third-party service available on the Shopify App Store to manage registration and filing. In the future, we may expand our offering to provide these services as well.