WooCommerce Tax Settings Wizard
Answer a few questions to get every value for Settings → Tax, plus a simulator that reproduces one-cent rounding differences.
Your details
On for VAT-style consumer pricing (the sticker price is final); off for tax-exclusive pricing common in the US and for B2B.
Supports {price_including_tax} and {price_excluding_tax} placeholders.
Set these at WooCommerce → Settings → Tax → Tax options
Prices entered with tax: No, I will enter prices exclusive of tax
Calculate tax based on: Customer shipping address
Shipping tax class: Shipping tax class based on cart items
Rounding: Round tax at subtotal level, instead of rounding per line — OFF (default, rounds per line)
Display prices in the shop: Excluding tax
Display prices during cart and checkout: Excluding tax
Price display suffix: (blank)
Display tax totals: ItemizedTurn on tax first: WooCommerce → Settings → General → tick "Enable tax rates and calculations". That reveals the Tax tab this wizard fills in.
Rounding simulator: per-line vs. per-subtotal tax
| Line | Qty | Unit price | Tax rate % |
|---|---|---|---|
| Item 1 | |||
| Item 2 | |||
| Item 3 |
- Rounded per line (default)
- $4.35
- Rounded at subtotal (setting ON)
- $4.35
- Difference
- None
With these numbers, rounding per line and rounding at the subtotal land on the same total. Try uneven prices or an odd rate to see them diverge.
The nine settings that matter
WooCommerce → Settings → Tax has nine settings that between them decide how tax is calculated, rounded and displayed. Most stores get these right by copying a preset (US, EU/UK, B2B) rather than reading each one from scratch, which is what this wizard's presets are for.
| Setting | What it controls |
|---|---|
| Prices entered with tax | Whether the price you type into a product is the final price (tax-inclusive) or needs tax added (tax-exclusive). |
| Calculate tax based on | Which address decides the rate: the customer's shipping address, billing address, or your shop's own base address. |
| Shipping tax class | Whether the shipping line is taxed at the cart's own tax class or a fixed one. |
| Rounding | Whether tax is rounded to the cent per line item, or once on the subtotal. |
| Display prices in the shop / in cart and checkout | Whether shown prices include or exclude tax. |
| Price display suffix | Optional text like "incl. VAT" appended to shown prices. |
| Display tax totals | Whether the order summary shows one tax line or a line per tax rate. |
Why rounding creates one-cent discrepancies
By default, WooCommerce rounds each line item's tax to the cent separately, then adds the rounded amounts. Turning on "Round tax at subtotal level" instead sums the untaxed line totals first and rounds once. With uneven prices or an odd tax rate, these two methods can land a cent or two apart, which is the most common "why doesn't the tax line match price × rate" support question a store gets. The simulator on this page reproduces that gap with your own numbers so you can see it before a customer points it out.
Setting it up
- 01
Enable tax
WooCommerce → Settings → General → tick Enable tax rates and calculations. That reveals the Tax tab.
- 02
Set the options
WooCommerce → Settings → Tax → Tax options, copying the values this wizard shows you.
- 03
Add your rates
Import a rate CSV (see the tax CSV generators) or add rows by hand on the Standard rates tab.
Questions people ask
Should prices include tax or not?
For EU/UK consumer stores, VAT-inclusive pricing (the sticker price is final) is the norm and what shoppers expect. US stores and most B2B stores use tax-exclusive pricing, adding tax at checkout.
What does "Calculate tax based on" actually change?
It picks which address WooCommerce checks against your tax rate table. Shipping address is the standard destination-based choice for most stores; shop base address means you always charge your own local rate regardless of where the customer is.
What's the difference between Standard, Reduced rate and Zero rate for shipping?
"Shipping tax class based on cart items" (the default) taxes shipping the same way as what's in the cart. Picking a fixed class instead always taxes shipping at that one rate, whatever's being shipped.
Will changing the rounding setting affect past orders?
No, it only affects new calculations going forward. Past orders keep whatever tax was calculated and recorded at the time.
Does the price display suffix support anything besides plain text?
Yes, it supports the placeholders {price_including_tax} and {price_excluding_tax}, so you can show both figures next to each other if you want.
Related tools
Want this builtinto your store?
I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.
Emmanuel Asika
Shopify & WooCommerce developer, Dublin
I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.
Last reviewed 30 September 2026.