You can use the Customized Tax option to configure tax for complex use cases such as the ones below:
Multiple tax rates are applicable on your sales.
Where you need to charge multiple taxes for each sale.
Using this option, you can configure tax information by uploading a CSV file with the required tax details. Here’s more information on the Customized tax option.
If you are looking to apply a common tax rate to all ZIP codes in the corresponding state that you have mentioned, you can specify the symbol * for a state in the CSV file.
For example, the first row contains New York State and * - this would mean that the tax rate of 4% will apply to all ZIP codes in New York State.
To configure the CSV correctly, you should specify only the ZIP code range for a specific jurisdiction and its corresponding tax rate. Or if there is a single ZIP code with a different tax rate, you can mention that in one whole row.
Here's a sample configuration for your reference:-
From the above screenshot, if the customer's ZIP code falls in between the range specified in row 2, the tax rate of 8% will be applied. If the customer's ZIP code is 14706 (row 3), then a tax rate of 8.5% will be applied. Finally, if customer's ZIP code does not fall within the criteria specific in row 2 & 3, the tax rate of 4% will be applied.