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How do state by state tax classes work?


I have created tax classes for each state in the US, but I don't understand how they work. Do I have to assign a tax class to each product? I always thought that the tax class will be applied automatically based on the buyer's location in the USA. For example if a New York resident buys something from the website, the tax class for New Your will be applied automatically. I'm saying this because I am being asked to assign a tax class class to products.

Thanks for the explanation.

You need to create one tax class but multiply tax rates inside your tax class. Assign all products to tax class


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