U.S. based shops need to make a selection to the Sales Tax tool, even if you plan not to charge sales tax in any instance. If you do not charge sales tax for any transaction, simply choose No Sales Tax.
The tool is located at the bottom of your Edit Shop Info page. If you charge sales tax for items shipped to certain states within the U.S., you must specify this. This is done by selecting sales tax "Based On U.S. Location". Then click on Add/Edit Sales Tax Locations. Then specify the states that apply, and the tax percentage for each state. It also asks you if you want to apply the same tax rate to Shipping/Handling, and Insurance. Please note, you must update the tax rates whenever they change, and do it for each state for which you charge sales tax. Currently only U.S. states are supported.
Click Here to View all the questions in Shop Account