Short answer: Tax only shows up when the app has a tax rate to use. With Collect tax automatically, that rate comes from Stripe, and Stripe only charges tax in places where you're registered to collect it. With your own rate, you have to pick the rate on the sale. Find your case below.
Setting up tax for the first time? Start with Automatic tax and per-product tax rates.
"Collect tax automatically" is on, but the sale has no tax
Why: Stripe calculates tax from your business address, your tax registrations, and what you sell. If it finds no registration for your location, or your products are set as non-taxable, the tax comes out to zero. It's not an app error.
- In your Stripe Dashboard, open your tax settings and check your business address. It has to be complete.
- Check that you've added a tax registration for the state or region where you're selling. Without one, Stripe adds no tax there. See why Stripe returns zero tax.
- Check each product's tax code. A product marked non-taxable never gets tax.
- In the app, you may see this message. Finish setup in your Stripe tax settings, or take the sale without tax.
Stripe Tax setup isn't finished
Finish it in your Stripe tax settings, or take this sale without tax.
- If the app says this, add your address in the Stripe Dashboard first.
Set your business address in the Stripe Dashboard to collect tax automatically.
This sale won't include tax. Automatic tax needs a connection.
Why: automatic tax needs an internet connection. An offline sale goes through without tax. Tips are never taxed, and the tax is worked out on the sale amount and any service fee.
Fix: get back online before you start the sale, or add the tax another way.
You have your own tax rate, but it isn't applied
Open the menu, tap Tax Rates (Android: Tax rates), and pick the rate. A manual rate and automatic tax can't be on at the same time. Choosing a rate turns automatic tax off, and turning automatic tax on clears the rate.
Adding a tax rate fails with a state error
Invalid US state code
Why: when you add a tax rate (Add Tax Rate), Stripe wants the state as its two-letter code, like CT, not the full name "Connecticut".
Fix: type the two-letter code. Update the app to the latest version too. Recent versions turn US and Canadian state names into codes for you.
Tax was added to a price that already included it
Why: with automatic tax, the app follows the tax setting in your Stripe account. If your default is exclusive, tax is added on top of the price. If it's inclusive, the price already contains it. If you haven't chosen, the app adds tax on top for USD and CAD and treats prices as tax-included in every other currency.
Fix: set your default to inclusive in your Stripe tax settings, or set the tax behavior on each product. For your own rate, an inclusive rate must be created as inclusive. You can't change that after it's created, so add a new one.
Still stuck? Contact us from the app: open the menu, tap Help, then tap the email icon at the top (Contact Support on iPhone, Email support on Android).