How to only tax one state

Could someone give me step by step instructions on how to add a tax to those who buy from the state of Tennessee. I am completely confused on how to do this.

Here’s a link to a good explanation how this is done:

First go to:

Shipping/Taxes > Manage Destinations

Add New Destination “Tennesee”

Once you’ve added Tennessee as a destination click “Edit” to the right

Countries > United States

States > United States:Tennessee

Scroll down and Click Update

(I don’t think you’ll need to add anything else since it’s the whole state of Tennessee you are applying “Tax” on…

Now Go to:

Shipping/Taxes > Manage Taxes

Add New tax > Tax Name > Tennessee

Click Add new

Now to the right of the Tax or VAT (I changed VAT to Tax since I’m in the US)

Click Edit

Below the Tax properties you will see “Tax Rates”

Type the Tax Rate in for Tennessee and click Update

Although I haven’t tested this it should be all you need to do…if not let me know or someone might “pipe in” with corrections to any mistakes I’ve made.

More complicated Tax setup here’s a great explanation:


Hope this helps.

Ok, thank you very much. I followed your directions and double checked them. But it’s not adding a tax when I put in a Tennessee address.

Do you think maybe there was a step you forgot to mention?

Thanks very much!

Do I need to put a number in the “priority” field? And is a Reg. number necessary for it to work?

Make sure your individual products have “Tennessee Tax” (or whatever you named it)

Highlighted on each product page.

Ahhh Mike you beat me to it…:stuck_out_tongue:

And as a side note to what Mike said…In Admin

Shipping/Taxes > Manage Taxes

You can Select the Tax Rate you have then click the large button below that says

“Apply selected taxes to all products”

This way you don’t have to go to the individual products and apply the tax rate to each product…some of us :wink: might have missed that the first time around.

Ok, thanks again. But I did that and it’s still not working. Thanks so much for helping me on this. Do you have any other suggestions?

Couple more things…

Under Manage Destinations (USA option) Make sure the “other” Non Taxable States are in the left box for STATES (All your USA destinations EXCEPT Tennessee)

Tennessee can’t appear in 2 destinations.

and United States is in the Top Box (Countries).

Also, Make sure that you have checked the “Available” box in Manage Taxes and UNCHECKED the Price Includes Tax for your Tennessee option.

Thanks, but after I made that change I get the following message when I try to order with a Tennessee address:

Unfortunately no shipping options are available for your location.

Please contact us and we will see about delivering to you.

Ok, I think I figured it out. I still had the other VAT (which I changed to taxes) available. I unchecked that box and it appears to be working.

Thanks very much for your help!


Good to hear you were able to get through it and now have it working…

Now I’ve noticed a problem. The folks ordering from Tennessee are seeing the following message:

[COLOR=“Red”]Unfortunately no shipping options are available for your location.

Please contact us and we will see about delivering to you.[/COLOR]

Please help ASAP!


If you are using Manual Shipping method you have to define the shipping costs to the new destination you created (Tennessee).

It is no longer defined under All destinations.

If you are using “Realtime” I’m not sure why it doesn’t work.