Magento Tutorials

Learn Magento with us

How to set up product tax classes in Magento

To set up Product Tax Classes in Magento:
  1. From Magento Admin panel to Sales→Tax
  2. Under Tax choose Product Tax Classes
  3. Click "Add New" button
  4. Enter your tax class name
  5. Click "Save Class" button
To assign tax class to a product:
  1. Search for a product
  2. Under General, choose correct tax class
  3. Click "Save Product" orange button

Setting up tax rates properly is definitely one of the most important things you need to do before launching your online business.

That is why in today’s guide, we will get to the bottom of all possible settings you need to think of, in order to have everything functioning impeccably.

Magento provides great options when it comes to configuring taxes on your store.

As always, start by logging into your administrator panel.

Head straight over to Sales, choose Tax and then Product Tax Classes.

See screenshot for better understanding.

Setting up product tax classes

Click on Add New Class, add your Product Tax Class Information and click Save Class orange button.

Setting up tax class

Name your class – we entered VAT 20% and clicked Save Class button.

Note that, if in the future, for whatever reason, you stop using a certain class, you will not be able to delete the class, as long as it is assigned to at least one product.

Deleting tax class

Next, you need to assign this tax class to your products. You can do so by simply finding your product in the admin panel, clicking on edit and choosing new tax class from the dropdown menu.

Setting up product tax class in Magento

Be careful and set up correct product taxes for every product, and save your changes.

You are all done, keep up the good work!