In general, tax is a financial charge upon a taxpayer or is a source of public revenue. Sales tax is a basic type of tax levied on the sale of certain goods and services.
You can specify the tax rate for the products as defined in the following steps −
Step 1 − Go to Store and click Configuration.
Step 2 − Click on the Taxes link which manages tax rates and types.
Step 3 − Click Add a tax rate link to add tax for the product.
Step 4 − It will open the taxes window for adding tax rate to the product as shown in the following screen.
It contains some fields such as −
Title − It is title of the tax rate.
Display title − It is the front-end display title of the tax rate shown to customers.
Description − It is used to describe the tax rate.
Rate − It is a percentage used to calculate the tax which is expressed as a decimal.
Type − It selects the tax type for the tax rate using drop-down menu.
After filling all the fields, click the Save tax rate button.
Step 5 − You will see the created tax rate name which is used for the product as shown in the following screen.
Step 6 − Go to Home page and click the View cart link to see the products in shopping cart.
Step 7 − Click the Checkout button to see the tax rate added for the products.
Step 8 − You can see the tax rate added along with the Subtotal as shown in the following screen.