Setting up taxes is a multistep process. If any of your goods/services are taxable, to setup your taxes you will need to configure:

1. Setup Product Tax Categories
2. Setup Tax Regions
3. Setup Tax Rules
4. Setup Tax Rates
5. Setup Tax Sets

Tax regions are the region for which you must collect taxes. For example, if you must collect state taxes, you could name the region after the state.

1. Click Setup
2. Click Taxes in the Finance section
3. Click the Tax Regions tab

   

4. Click the Add button 

   

5. Enter a Name for the new regions.
6. Click the   button to associate product categories that are taxable in this region.

   

7. Repeat the step above to add additional product categories.
8. Click Done.

The next step is to set up your tax rules.