Easy Tech TutsHow to add tax on Squarespace with New Automated Tax Options Setup or Manual Setup Guide 2026
By Impran M N
Charging the correct sales tax matters whether you're selling physical goods or digital products, and Squarespace's automated tax tools can handle most of the heavy lifting. This guide walks through enabling automated taxes, adding your business info, and registering the states where you collect tax.
01Check eligibility and clean up old settings
Confirm you're on a Business, Commerce, or Advanced plan, and remove any manual tax settings or third-party tax tools like TaxJar before starting.
02Enable automated taxes
Go to Settings, then Taxes, and set the Calculation Method to Automated.
03Add your business info
Complete the setup wizard with your legal business name, type, tax address, and optional EIN, then save.
04Set a default product tax code and state registrations
Add a product tax code matching your main product type, then choose the U.S. states where you're tax-registered and select the correct nexus type for each.
05Choose your tax display method and verify
Decide whether tax is added at checkout or included in the price, then return to Settings > Taxes to confirm the "Collecting" badge, state registrations, and default tax code are all set correctly, and run a test checkout.
Frequently asked questions
Do I need a specific Squarespace plan to use automated taxes?
Yes, you need to be on a Business, Commerce, or Advanced plan to access automated tax calculation.
Can I set different tax codes for different products?
Yes, under Inventory > Product > Organization, you can assign product-specific tax codes for more accurate categorization, like Clothing or SaaS.
Should tax be shown at checkout or included in the price?
Squarespace lets you choose either "Add at checkout," which is common in the U.S., or "Include in price," depending on your preference.
How do I know my tax setup is working correctly?
Check for a green "Collecting" badge in Settings > Taxes, confirm your state registrations and default tax code, then run a test checkout to verify.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
