How to Set Up Taxes for Your Wix Store: A Complete Guide

Managing sales tax is complex because requirements vary by location and change over time. In some countries, such as Germany, a single flat rate applies to most products—currently 19% VAT for standard goods and services. In the United States, however, each state sets its own sales tax rate, which can differ not only by state but also by product type and even by municipality.

This variability means that trying to track every applicable rate manually is impractical for most sellers, particularly those serving customers across multiple regions. Wix addresses this through two main approaches: an integrated automated service and a fully manual setup for simpler situations.

Before you configure taxes, it helps to have your store's foundation in place. See How to Create a Professional eCommerce Website with Wix for a full store setup walkthrough, and How to Add Payment Methods on Wix: A Complete 2026 Guide to ensure checkout is ready before you go live.

To reach the tax configuration area in Wix, follow these steps:

1. Log in to your Wix dashboard.
2. Open your Store Settings.
3. Navigate to the Taxes section.

From here you will see two paths: connect an automated tax service or add locations manually.

Wix integrates with Avalara, a worldwide tax calculation service. Avalara automatically determines the correct tax rate for each transaction based on the customer's location and the type of product or service being sold. This is particularly valuable for US-based sellers, where state-by-state sales tax rules make manual tracking extremely difficult.

During the walkthrough, the presenter noted that different US states have different rates, and even within a single state the applicable rate can depend on whether the item is a product, a service, or a delivery fee—making Avalara the recommended option for anyone selling across multiple US states or internationally.

When Avalara makes sense:

• You sell to customers in multiple US states.
• You sell to multiple countries with varying VAT or GST rules.
• You want rates to update automatically when laws change.
• You want to reduce the risk of manual errors.

If your situation is simpler—for example, you operate from a single country with a straightforward tax structure—you can add locations and enter rates manually.

The walkthrough demonstrated this using Germany as an example:

1. Click Add Location in the Taxes section.
2. Select the country (e.g., Germany).
3. Set the tax rate for Products — 19% in this example.
4. Set the rate for Services — also 19%.
5. Set the rate for Cancellation Fees — 19%.
6. Set the rate for Shipping/Delivery — 19%.
7. Click Save.

Germany was highlighted as a relatively straightforward case because the same 19% standard VAT rate applies across all those categories, making manual setup practical.

For the United States, the same manual process is available: select the country, then choose a specific state, and enter rates for products, services, and shipping individually. However, as noted in the walkthrough, US rates vary significantly by state and the presenter explicitly did not know the correct rate for California off the top of his head—which illustrates why a tax consultant is strongly recommended if you go the manual route for US taxes.

Advanced Tax Options

Wix also provides an Advanced option within the manual tax setup, which allows you to apply different tax rates using the Sales Tax field. This can be useful if your product catalog includes categories taxed at different rates—for instance, if your jurisdiction taxes food at a reduced rate compared to general merchandise.

You can also create Tax Groups to assign specific rates to different products within your store, giving you granular control over how taxes are applied at checkout.

One important configuration choice is whether tax appears as part of the displayed product price or is added as a separate line item at checkout.

As explained in the walkthrough, in B2C retail it is standard practice to show a single all-inclusive price. In B2B contexts, buyers typically expect to see the net price and tax itemised separately on their invoice. Wix lets you choose which approach applies to your store.

This is also relevant for invoicing: customers and business clients generally need to see that tax has been collected on their receipts, which is another reason getting this configuration right matters from a compliance perspective.

If your store carries products that fall under different tax categories, Tax Groups let you handle this without creating separate manual location entries. You assign products to a group and set a specific rate for that group within a given location.

This feature is most relevant when your jurisdiction uses differentiated rates—reduced VAT on essentials versus standard VAT on luxury items, for example. If your tax situation is uniform across all products, you can skip this step entirely.

Once your tax settings are in place, it is also worth reviewing how your products are organised. See How to Organize Wix Product Categories for Your Online Store to keep your catalogue structured in a way that makes tax group assignment straightforward.

The walkthrough is clear on this point: for US multi-state sellers, Avalara is strongly recommended. For single-location sellers in a country with a simple tax structure, manual configuration is workable—but consulting a tax professional before going live is still advised.

For most store owners selling across multiple US states or internationally, connecting Avalara is the most practical and reliable option. For single-location stores in countries with simple tax structures, manual configuration is workable but should be set up with input from a tax consultant to ensure accuracy.

Regardless of which method you use, completing your tax setup before launching your store is essential—customers need to see correct pricing, and you need accurate records for compliance.

Try Wix for free and configure your store taxes with confidence.