Learn how to choose or change your tax preferences for each state.

1. In ShipCompliant, go to Tools, then click Tax Preferences.
2. Select the tax preferences you want to define for each state in the United States.

   The tax preference options that appear in the dropdowns for each state vary depending on the state's tax rules and requirements. For example, Delaware does not have sales tax, so No Tax is the only option for onsite and offsite orders. The default onsite and offsite preference for each state is the most common selection, and is marked with an asterisk (*). The defaults may change slightly depending on if you have the Nexus checkbox selected for the state. If you are unsure of your tax preferences, review any documents you have received from the states, or call the state for guidance.

   No Tax

   Self-explanatory.

   Base State Rate

   Includes the state-wide taxes that apply to your product types.

   Local Taxes

   Includes the state tax and standard local taxes (fully managed by the state).

   Economic Nexus

   Includes the state tax, standard local tax, and state-administered local jurisdiction taxes. This excludes any tax administered by local jurisdictions (where taxpayers must register with and pay the jurisdiction directly).

   Premises

   Available only for the state where your business is located. This rate can be applied to either offsite, onsite, or both. Pickup orders will also use the premises rate when specified. The shipping address for the order must be an in-state address to be applied.

   To apply the premises rate, visit the Tax Preferences page and enter your premises rate at the top of the page. Select Premises from the dropdown next to the state where your business is located (indicated by a checkmark under the Nexus column).

   Single Local Use Rate

   One state (Texas) offers remote sellers the ability to collect and pay tax at a single rate (as opposed to a variable rate for each local jurisdiction).

   Voluntary Collection

   One state (Louisiana) offers a special voluntary collection (and remittance) rate for remote sellers who don't meet the economic nexus requirements to remit state and variable local taxes.

3. Click Apply Tax Preferences to save your updates.