Automatically calculate sales tax, VAT and GST for your orders.

Automated tax rates apply the correct local tax rates and rules at checkout based on your store’s location, your customer’s address, and the places where you’re registered to collect tax. Squarespace supports automated tax calculations for US sales tax, EU and UK Value-Added Tax (VAT), and Goods and Services Tax (GST). Use this guide to set up automated taxes for your store.

Automated tax features are available on the Core, Plus, Advanced, Business, Commerce Basic and Commerce Advanced plans. To learn more, visit Choosing the right Squarespace plan.

Before you begin

To get started with setting up automated taxes, you’ll need to complete a few steps outside Squarespace first:

• We strongly recommend consulting with a tax expert about registering your business with the tax authorities in each region where you’re required to collect taxes. Squarespace can’t help with registration, so if you're unsure where to start, consult a tax expert. You'll need to add these registrations in step 3 of the setup process.
• Check your seller accounts (like PayPal) and remove any previously added tax or shipping settings. Conflicting settings can prevent automated taxes from working correctly.

Keep in mind:

• Digital Product pricing plans always use the standard sales tax rate from your default product tax code.
• You can’t create tax exemptions for specific customers.
• Subscription products will always renew using the tax rate from the original order, even if tax rates change later.

You can switch to manual taxes at any time.

Note: Every business is different, and tax laws vary by location. You're responsible for registering with your appropriate tax authorities. Squarespace can’t help with this process or offer tax advice. You’re also responsible for ensuring your business collects, files, and pays the correct taxes. We recommend working with a professional tax advisor for specific guidance about your business and to understand your tax obligations.

Step 1 - Select Automated taxes

Setting up automated taxes depends on your current tax setup. Use the table below:

Note: To calculate automatic taxes, you must add tax registrations for the correct addresses or postal codes.

Step 2 - Add your information

 If you use Squarespace Payments, skip to step 5 listed below. If you’re not using Squarespace Payments, follow all of these steps:

1. Follow the prompts to add your business or individual details.
2. In the Review and confirm window, click Confirm.
3. Under Tax defaults, go to Tax address, and click Add.
4. Enter your head office tax address, and click Save.
5. Under Product tax code, click Add. 
6. Select a default product tax code from the dropdown menu, and click Add tax code. You can only add one default product tax code at this time.

Step 3 - Add your regional tax registrations 

To add tax registrations: 

1. In the Taxes panel, click Add Registrations.
2. Select the locations where you’re registered from the dropdown menu.
3. Select the registration type for each location from the dropdown menu.

Step 4 - Choose how you’ll display taxes to customers

You can decide whether taxes show up at checkout or are already built into the price. To do this, go to the Taxes panel. Under Applying tax, select Add at checkout, or Include in price.

Pricing and fees

At this time, we’re offering a promotional price of $0.00 USD per transaction for automated tax calculations.

 

Starting in January 2026, Squarespace will apply a fee for use of the automated taxes feature. We’ll notify you in advance of this fee being implemented. The automated taxes fee will apply to each transaction after a successful checkout

We’ll collect a percentage of the total sale based on your plan, limited to a maximum amount based on the currency of the sale:

We set a fee limit for each currency based on the currency of the sale. Use the table below to find the maximum fee in each currency:

FAQ

How does my store apply the right tax rate at checkout?

Automated taxes makes calculations in real-time using your business address, your customer’s shipping or billing address, and the locations where you've registered to collect taxes. For help understanding the rates or your tax responsibilities, consult a tax expert.

Why didn’t my store charge sales tax?

There are a few reasons this might happen:

• You didn't complete the setup process.
  • To fix this, complete the setup process again. A green Collecting message will display in the Taxes panel when the process is complete. 
• The customer’s address falls outside your registered tax regions. 
  • To fix this, register with the proper tax authority in your area before you charge taxes. After registering with the correct tax authority, you can add registrations for that US state or country in your settings. Your store won’t charge sales tax if the customer’s address falls outside your registered tax regions. For guidance on your tax registrations, consult a tax expert.

I’m currently using TaxJar. Can I use automated taxes if I already have TaxJar connected?

No. Automated taxes and TaxJar can’t run at the same time. Switching one on switches the other off. To use automated taxes, disconnect TaxJar from your site and complete the setup process for automated taxes.

Tip: Register for our Setting up shipping and taxes for Squarespace Commerce webinar where we’ll show you how to set up tax rates and add shipping and pickup options for physical products.