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Home>Online Taxes

Create Tax Rates for Square Online

DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.

The tax tools built into your online store help simplify setting up and managing tax rates. Customers in the United States can take advantage of the automatic tax calculator for US shipments. Canadian customers can use the pre-populated country and province taxes, and customers in other locations can manually add tax rates by country.

Note: Tax settings from your Square account do not sync to Square Online. You’ll need to set up taxes specifically for online purchases in the Square Online Overview page.

Create Canadian Tax Rates

Taxes are pre-populated for Canadian provinces and territories. These can be overridden if needed using Edit.

To create Canadian tax rates:

  1. Go to the Square Online Overview page.

  2. Select Settings > Sales Taxes or Shared Settings > Sales Taxes.

  3. Click Add Tax Rate. If you’ve already added shipping rates for Canada, click Set Up.

  4. Adjust the country tax rate by entering a new amount in the Country Tax Rate field. 

  5. Click Edit for any province or territory that you want to manually add a tax rate for.

  6. Click Save when finished or Reset to Default to start over.

Edit Tax Rates

To manually edit tax rates:

  1. Go to the Square Online Overview page.

  2. Select Settings > Sales Taxes or Shared Settings > Sales Taxes.

  3. Click Edit to manually edit the tax rates or settings for any region.

You can change the tax rate by entering a new amount in the Tax Rate field, change the tax name by entering a new Name, change the rule, add to the country tax, charge instead of a country tax or select Compound to have the rate calculated based on the total of the order plus the state tax.

Automatically Calculate Canada Tax Rates

The first step is to configure your store for sales tax. You’ll want to check that your business addresses are added and that any non-taxable items have been marked as exempt. Learn more about tax rates.

You’ll need to have a valid US address on file for Square Online in order to automatically calculate US tax rates. To start:

  1. In your Square Online Overview page, go to Fulfilment > Shipping.

  2. Edit and save your “Shipping from” address(es).

  3. In your Square Online Overview page, go to Settings > Sales Taxes or Shared Settings > Sales Taxes.

  4. Under “Tax locations”, select the link to view your tax locations.

  5. Select Add tax location to add your location information in the pop-up window. Select Save and Done when finished.

  6. On the Sales taxes page, select Add tax rate.

  7. In the dropdown menu, select United States.

  8. Check the Automatically calculate taxes box.

  9. Select Save when finished.

Create Tax Rates for Other Countries

Taxes for areas outside of the US and Canada are charged at the country level only, and must be created manually. The tax rates should be configured based on where the buyer of the goods or services is located.

To create taxes for other countries:

  1. Go to the Square Online Overview page.

  2. Select Settings > Sales Taxes or Shared Settings > Sales Taxes.

  3. Click Add Tax Rate or if you already have a shipping rule for the country, click Edit.

  4. Select a country from the dropdown menu and enter the Country Tax Rate

  5. Add a Name for the tax rate, and click Save to apply your changes.

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