setting up taxes is one of the more important tasks to do as you are getting your store ready for the world most businesses have legal obligations to pay taxes and woocommerce has many options to help you set up and collect taxes as required in your legal jurisdiction be sure to research and ask what is required in your country State Etc let's get started head to woocommerce settings and then tax if you don't have a tax tab then jump over to the general Tab and enable taxes back in the tax tab we begin on the tax option submenu first up prices entered with tax option is a very important option for how you manage taxes in your store it determines how you will input product prices later when creating products first you can choose yes I will enter prices inclusive of tax meaning all your products already include taxes in their price the other option no I will enter prices exclusive of tax would mean that your product prices are set excluding taxes your taxes are then calculated in addition to your product prices next is the calculate tax based on setting you can choose between customer shipping address customer billing address and Shop Base address just note that the address field needs to be filled in to get the taxes to calculate if you have different taxes between different locations for most stores shipping tax class based on cart items can be left as is this means tax classes and their costs are based on the items in the cart for example if a product was set as a reduced rate product your reduced rate taxes would apply if this is not the case in your tax jurisdiction please choose a different tax class appropriately if your tax laws require rounding this done last when the sub total is calculated enable the rounding option otherwise they will be round per line next up is additional tax classes these are additional classes you can use outside of the default standard rates in most cases you will want to use a standard rates class if however you sell Goods which require a different tax class you can add those classes here to get you started we add reduced rate and zero rate tax classes for you you'll notice that at the top under the tax tab each class you have is listed selecting a class will take you into its tax rates show you the current rates and let you set up new ones for that class the next setting display prices in the shop determines how prices are displayed in your store excluding the cart and checkout Pages choose from including tax or excluding tax the display prices during carton checkout is just like the display prices in the shop giving you a separate control to show our high tax price prices on the cart and checkout Pages next you can add a price display suffix that shows after your product prices this could be for example including sales tax to help explain your pricing finally you can choose to display the tax totals as a single total or as itemized a single total will show one tax charge where itemized will show each applicable tax rate with that we've covered the basics of the tax settings we have examples and further reading in our documentation be sure to check that out to see how adding a tax rate works and common setups thanks for [Music] watching