Tax Issues

If sales tax is not being calculated at checkout, verify each of the following in Revenue > Sales Tax:

Sales tax must be configured before your business can accept payments. If tax is not set up, customers will see an error message when they try to complete checkout for any paid experience.

To resolve this, complete the tax setup in Revenue > Sales Tax by entering your business address, selecting a tax code, adding at least one state registration, and verifying the status shows Tax Active.

Stripe Tax calculates the tax rate automatically based on two factors: the customer's billing address and your state tax registrations. If the tax rate appears incorrect, consider the following:

• The rate is determined by the customer's location, not your business location. Different cities and counties may have different rates within the same state.
• If you expect tax to be charged but see $0, verify that you have a registration for the customer's state.
• Stripe uses the latest tax rate data from state and local tax authorities. If your state recently changed rates, the update may take a few days to reflect.

If a customer is located in a state where you do not have a tax registration, $0 tax is charged. This is expected behavior — you are only required to collect tax in states where you have nexus (a tax obligation).

For most experience businesses, you only need to register in the state where your business is physically located. If you believe you should be collecting tax in additional states, consult a tax advisor about your nexus obligations.

Gift card transactions have specific tax rules:

• Gift card purchases are taxed at the time of purchase, just like any other transaction.
• Gift card redemptions only charge tax on the remaining cash portion. The gift card amount is not taxed again to avoid double taxation.
• Refund credits issued as gift cards (from cancellations) are not taxable.