This article covers
How to configure taxes for different zip codes in the US?
Reasons for the tax reports not displaying the tax jurisdiction name
In the USA, even within a single city, the tax rates vary from state to state and from city to city. Even within a single city, there might be different tax rates based on the zip code.
To overcome this, we offer our customers the option to upload a CSV that covers the various zip code ranges or use third parties like Avalara, Taxjar, etc for tax calculation.
In this article, we will cover the methods to configure taxes for the various zip ranges as part of the CSV and also why the tax reports might not include the tax jurisdiction name for certain jurisdiction types.
In the US Sales tax CSV file (can be found under Settings > Configure Chargebe > Taxes > the United States), you will have the option to configure the tax rate for a state, the tax rate for a city within the state, and the tax rate for a county within the city. You can also configure the zip code (or zip ranges) for that row.
If the tax rate is different for 2 different zip codes, then you would have to configure these in 2 separate columns as shown below:
If the tax rate is the same for a range of zip codes, then you would have to enter the starting zip code in the zip code start column and the end zip code in the zip code end column and leave the zip_code column empty., as shown below:
Now, coming to the tax jurisdiction on tax reports, you might sometimes see that the tax reports downloaded from Chargebee do not contain the jurisdiction code and name for certain jurisdiction types. For example, for the jurisdiction type county, the jurisdiction code and name might be empty. This might be possible when you are using a third-party application like Avalara or Taxjar. In such cases, the tax rates directly come from the third-party application and the jurisdiction codes and names might be empty at their end for a particular jurisdiction type. We would encourage you to reach out to their support team to resolve this.