# Set up Stripe Tax

Enable Stripe Tax to automatically calculate and collect tax.

You can set up Stripe Tax in the Dashboard by [configuring your tax settings](https://dashboard.stripe.com/settings/tax). After Stripe Tax is set up, you can either [enable tax in the Dashboard or by adding one line of code](https://docs.stripe.com/tax/set-up.md#integrate) depending on which Stripe products you integrate with.

To set up Stripe Tax programmatically, use the [Tax Settings API](https://docs.stripe.com/tax/settings-api.md).

If you’re a platform or marketplace that wants to set up Stripe Tax, see [Use Stripe Tax with Connect](https://docs.stripe.com/tax/connect.md).

> [Log in](https://dashboard.stripe.com/settings/tax) or [sign up](https://dashboard.stripe.com/register) for Stripe to enable Stripe Tax.

## Video demo 

This short video shows you how to enable automatic tax collection through the Dashboard.
[Watch on YouTube](https://www.youtube.com/watch?v=PFzV64TjSmo)
## Set your head office address

Your head office is where your business is located or, if you sell physical goods, the address where you’re shipping goods from.

By default, we set your head office address to your Stripe business address so you only need to review and confirm that your details are correct on the [tax settings page](https://dashboard.stripe.com/settings/tax). Alternatively, you can [retrieve](https://docs.stripe.com/api/tax/settings/retrieve.md) and [update](https://docs.stripe.com/api/tax/settings/update.md) your head office address using the API.

## Select your preset tax code

A tax code is a classification of your product or service for Stripe Tax. We use this to make sure that the correct tax rate is applied to your transactions.

- **Preset product tax code:** The preset product tax code is the default tax code that applies to your [Products](https://docs.stripe.com/api/products/object.md) when you don’t explicitly specify a [tax_code](https://docs.stripe.com/api/products/object.md#product_object-tax_code). To learn more about the relationship between products, prices, and tax codes, and how they impact tax behavior, see the [products, prices, and tax codes](https://docs.stripe.com/tax/products-prices-tax-codes-tax-behavior.md) documentation.

You must select the most appropriate product tax code for every product or service you sell. Visit the [tax settings page](https://dashboard.stripe.com/settings/tax) to select a preset product tax code to serve as the default. Afterwards, visit the [product catalogue](https://dashboard.stripe.com/products?active=true&has_tax_code=false) to confirm that the default is correct for your existing products. If not, edit each product to select a more appropriate product tax code for it.

If you sell physical goods and want to charge tax on the shipping fees, use the preset shipping tax code. This code determines the appropriate [tax treatment](https://docs.stripe.com/tax/products-prices-tax-codes-tax-behavior.md#shipping-tax-code) for shipping fees, aligning with state and country-specific regulations. It makes sure the correct tax treatment is applied, as shipping fees might be taxed differently than the products themselves.

## Select whether prices include tax by default

Tax behavior is a setting that determines whether Stripe should add taxes on top of your price, or if the price already includes taxes. This ensures that taxes don’t affect the total amount charged to your customers.

To calculate the total amount, Stripe needs to know the tax behavior of each price in the transaction. The default tax behavior is the default setting that applies when you don’t explicitly specify the [tax_behavior](https://docs.stripe.com/api/prices/object.md#price_object-tax_behavior) on a [Price object](https://docs.stripe.com/api/prices.md).

You have three options:

- **Exclusive:** You want to exclude tax from prices so that you add tax on top.
- **Inclusive:** You want to include tax in prices so that tax doesn’t affect the total.
- **Automatic:** You want to use the [currency](https://docs.stripe.com/api/prices/object.md#price_object-currency) of prices to let Stripe decide whether to include or exclude tax. Stripe excludes tax from prices in USD and CAD, but includes it in prices for all other currencies.

Learn about [tax behavior for products and prices](https://docs.stripe.com/tax/products-prices-tax-codes-tax-behavior.md#tax-behavior).

## Add registrations

Before you start collecting tax from your customers, you must [register](https://docs.stripe.com/tax/registering.md) with the local tax authority. A [tax registration](https://docs.stripe.com/api/tax/registrations.md) lets Stripe know that your business is registered to collect tax on payments within a region, enabling you to automatically collect tax. Our [monitoring tool in the Dashboard](https://dashboard.stripe.com/tax/transactions) helps you understand where you might need to register with the local tax authority. Without a registration in the customer’s location, the calculation returns zero tax. To learn more, see [Understand zero tax amounts](https://docs.stripe.com/tax/zero-tax.md).

Visit [Locations](https://dashboard.stripe.com/tax/locations) tab in the Dashboard to add your tax registrations. If you haven’t registered yet but are planning to do so, you can also schedule a tax registration to take effect at a date in the future. You can also use [Stripe to register](https://docs.stripe.com/tax/use-stripe-to-register/united-states.md) on your behalf. Additionally, you also can [use Taxually to register](https://docs.stripe.com/tax/use-taxually-to-register.md) in locations outside the US.

## Enable Tax in your Stripe integration

To enable automatic tax on your Stripe integration:

#### Dashboard

After you click **Get started**, Stripe Tax is automatically enabled for new transactions that you create in the Dashboard. To disable it, go to the [tax settings](https://dashboard.stripe.com/settings/tax/integrations) page.

|  |
| [Invoicing](https://dashboard.stripe.com/invoices) | Automatically calculate tax on your invoices. To learn more, see [Automatically collect tax on invoices](https://docs.stripe.com/tax/invoicing.md). |
| [Subscriptions](https://dashboard.stripe.com/subscriptions) | Calculate the tax to collect on your recurring payments. To learn more, see [Collect taxes for recurring payments](https://docs.stripe.com/tax/subscriptions.md). |
| [Payment Links](https://dashboard.stripe.com/payment-links) | Automatically calculate and collect tax on a payment page and share a link to it with your customers. To learn more, see [Automatically collect tax on Payment Links](https://docs.stripe.com/tax/payment-links.md). |

Enabling Stripe Tax doesn’t update your existing invoices, subscriptions, and payment links. To start calculating and collecting tax on them, edit each one in the Dashboard to enable automatic tax.

#### API

If you create Invoices, Subscriptions, Payment Links, or Checkout Sessions with the API, add `automatic_tax.enabled=true` to your integration.

For custom `PaymentIntent` flows, use the [Tax API](https://docs.stripe.com/tax/payment-intent/custom.md) to calculate and record tax instead.

|  |
| [Invoicing](https://docs.stripe.com/api/invoices/update.md#update_invoice-automatic_tax-enabled) | Automatically calculate tax on your invoices. To learn more, see [Automatically collect tax on invoices](https://docs.stripe.com/tax/invoicing.md?dashboard-or-api=api). |
| [Subscriptions](https://docs.stripe.com/api/subscriptions/update.md#update_subscription-automatic_tax-enabled) | Calculate the tax to collect on your recurring payments. To learn more, see [Collect taxes for recurring payments](https://docs.stripe.com/tax/subscriptions.md#create-subscription). |
| [Payment Links](https://docs.stripe.com/api/payment-link/update.md#update_payment_link-automatic_tax-enabled) | Automatically calculate and collect tax on a payment page and share a link to it with your customers. To learn more, see [Automatically collect tax on Payment Links](https://docs.stripe.com/tax/payment-links.md?dashboard-or-api=api). |
| [Checkout](https://docs.stripe.com/api/checkout/sessions/create.md#create_checkout_session-automatic_tax-enabled) | Automatically calculate taxes on all purchases and subscriptions accumulated during a Checkout session. To learn more, see [Collect tax with Checkout](https://docs.stripe.com/tax/checkout.md). |
| [Custom flows](https://docs.stripe.com/tax/payment-intent/custom.md) | Use Tax with [PaymentIntents](https://docs.stripe.com/api/payment_intents.md), or collect tax on payments collected outside of Stripe. To get started, use our quickstart for [custom payment flows with the Payment Intents API](https://docs.stripe.com/payments/quickstart-payment-intents.md). |

Enabling automatic tax in your integration doesn’t update your existing invoices, subscriptions, and payment links. To start calculating and collecting tax on them, update each one with `automatic_tax.enabled=true`:

- [Update an invoice](https://docs.stripe.com/api/invoices/update.md#update_invoice-automatic_tax-enabled)
- [Update a subscription](https://docs.stripe.com/api/subscriptions/update.md#update_subscription-automatic_tax-enabled)
- [Update a payment link](https://docs.stripe.com/api/payment-link/update.md#update_payment_link-automatic_tax-enabled)

## Set up filing

After you add your registrations and start collecting tax, you can set up filing to automatically submit returns and remit tax in the regions where you’re registered. Stripe can help you file automatically in [over 90 countries](https://docs.stripe.com/tax/supported-countries.md) and in all US states.

Automated filing can help you:

- Prepare and submit returns automatically
- Receive email notifications and reminders to review your scheduled returns
- Track the status of each filing and payment
- View copies of your completed filings

You can [file with Stripe in the US](https://docs.stripe.com/tax/file-with-stripe.md). You can also [file with Stripe outside the US](https://docs.stripe.com/tax/file-with-stripe-outside-us.md) for simplified GST/HST registrations in Canada and non-Union One Stop Shop (OSS) registrations through Ireland. For other filings outside the US, [file with Taxually](https://docs.stripe.com/tax/file-with-taxually.md).

## Disable tax collection

To stop calculating and collecting tax in your payments integrations:

1. Turn off automatic tax calculation in the [Tax](https://dashboard.stripe.com/settings/tax) page in the Dashboard.
2. Remove active tax registrations in the [Dashboard](https://dashboard.stripe.com/tax/locations).
3. Edit existing recurring integrations, such as [subscriptions](https://dashboard.stripe.com/subscriptions), [payment links](https://dashboard.stripe.com/payment-links), and [invoices](https://dashboard.stripe.com/invoices).

You can also set `automatic_tax[enabled]=false` in the [Subscriptions](https://docs.stripe.com/api/subscriptions/update.md#update_subscription-automatic_tax-enabled), [Payment Links](https://docs.stripe.com/api/payment-link/update.md#update_payment_link-automatic_tax-enabled), or [Invoices](https://docs.stripe.com/api/invoices/update.md#update_invoice-automatic_tax-enabled) APIs instead of the Dashboard.