Disclaimer: This post does not contain tax advice. For any questions about sales tax, please consult with a tax professional.

If you are on a Squarespace Commerce Basic or Commerce Advanced plan, you may now be able to set up an integration with TaxJar to automatically calculate sales tax within the US at checkout. This is a vast improvement for businesses in destination-tax states like New York, where sales tax is charged based on the purchaser’s location. Before this integration, sales tax rates had to be manually entered into Squarespace for each zip code range in every state where your business has nexus.

Note: Don’t see the option for TaxJar yet? It’s still in beta as of January 2021 and is being rolled out gradually to all Squarespace Commerce customers.

Because the TaxJar integration is still in beta, there are some limitations. At the time of writing this post, here are a few:

US only
no tax for service produts
standard tax rate for physical and digital products
for new TaxJar users only

Check out the full Squarespace support article for more information and other limitations.

How to Set up Automatic Sales Tax Calculations in Squarespace

1. Go to Commerce > Taxes. Click Automatic rates. Then click Get Started and then Check Eligibility. Answer the questions to make sure you are okay with all the limitations, then click Connect and Allow.

2. Create a TaxJar account within the setup process (don’t create it separately by starting at taxjar.com). You’ll need your business information and EIN (sales tax ID provided by the IRS). You’ll have a 30 day setup period before you’ll need to start paying for your subscription.

3. Click the notifications bell in TaxJar and walk through setting up your business.

3. Add all the states where you have nexus. (If you are not sure, consult with a tax professional.)

4. In Squarespace, return to Commerce > Taxes and toggle ON Enable Automatic rates. At any time, you can disable automatic rates and return to your original, manually entered tax settings. You can fully disconnect TaxJar by going to Settings > Extensions and removing it from your website there.

It’s not clear to me yet if there will be a cost associated with this integration after the beta period. I’d recommend reaching out to support.squarespace.com for beta and pricing information.