Collect taxes

Learn how to collect taxes with Stripe Tax.

Stripe Tax is a paid product that automatically calculates the tax on your transactions without the need to define the rates and rules. Fees only apply after you’ve added at least one location where you’re registered to calculate and remit tax.

Configure your Checkout Session to collect tax

To start collecting tax:

Pass automatic_tax[enabled]=true.
Specify a tax_code for each line item or set a preset tax code in the Dashboard.
Specify a tax_behavior for each line item or set a default tax behaviour in the Dashboard.

Tax codes

Tax codes associate products with tax rates. Choose the tax code that best fits your product from the list of available tax codes. If a product doesn’t fit any of the specific codes, use one of the codes with “General” in its name.

Tax behaviour

The tax behaviour determines how tax is presented to the buyer. There are two options for tax behaviour:

Exclusive: The product price doesn’t include tax. Tax is added as a separate amount.
Inclusive: The product price includes any tax amount.

Learn more about tax behaviour.

OptionalCollect tax through the Payment Element

OptionalCheck the response

Render tax amount

Use useCheckout to render the tax amount in your checkout form. Understand the difference between inclusive and exclusive tax.

import React from 'react';
import {useCheckout} from '@stripe/react-stripe-js';

const CheckoutForm = () => {
  const checkoutState = useCheckout();
  if (checkoutState.type === 'loading') {
    return (
      <div>Loading...</div>
    );
  } else if (checkoutState.type === 'error') {
    return (
      <div>Error: {checkoutState.error.message}</div>
    );
  }
  const {checkout} = checkoutState;
  return (
    <div>
      <h2>Checkout Summary</h2>
      <pre>
        {JSON.stringify(checkout.lineItems, null, 2)}
      </pre>
      <h3>Totals</h3>
      <pre>
        Subtotal: {checkout.total.subtotal.amount}
        {/* Make sure you are using the appropriate tax amount type (taxInclusive and/or taxExclusive) for your integration */}
        Tax: {checkout.total.taxExclusive.amount}
        Total: {checkout.total.total.amount}
      </pre>
    </div>
  )
};