What is the Tax Rate Option in the Shopping Cart for?

[DDeJesus]

In many eCommerce applications, appropriate sales tax must be applied to orders shipped to the state in which the business in located. As such, tax rates may be specified for each state. When a customer provides a shipping address, any existing tax rates for his/her resident state will be applied to his order automatically. If Tax Rate Options are not configured, no sales tax will be charged. The dollar amount is calculated on the sub total of the entire order, before shipping charges are added.

For international tax rates, it is recommended that no state tax rates are applied. Use a custom PHP shipping include to calculate and/or apply international tax requirements for your country.