Tax Rates
Tax Rates in Collect are imported from Stripe. You can edit, manage, and create Tax Rates in the Collect app or the Web Dashboard.
Managing Tax Rates
In the app, open Settings → Tax Rates to see your rates from Stripe and choose which ones to apply by default.
For each Tax Rate, you can toggle Apply by Default to control whether it is automatically included when taxes are applied during processing.
How Taxes Work with Payment Flows
The way taxes are applied during a transaction is controlled by your Payment Flow. Each Payment Flow has a Tax setting with three options:
| Setting | Behavior |
|---|---|
| Always | Automatically apply any Tax Rates marked as Apply by Default. No prompt is shown. |
| Ask | Apply defaults, then prompt to confirm or change the tax selection before completing the transaction. |
| Never | Skip tax calculation entirely, even if Tax Rates exist and are set to Apply by Default. |
Examples
- You want taxes applied to every transaction without interruption: set Tax to Always and enable Apply by Default on the rates you need.
- You want to review and adjust taxes on each transaction: set Tax to Ask. Default rates will be pre-selected, but you can add or remove any available rate before continuing.
- You don't charge tax: set Tax to Never, or simply turn off Apply by Default on all rates.
Stripe Tax
Collect uses Stripe Tax Rate objects directly, ensuring a consistent tax experience across your Stripe business ecosystem. Any Tax Rates you create or modify in Collect are reflected in your Stripe account, and vice versa.