# Tax rates

The Tax Rates configuration in SellStack allows administrators to define the specific tax percentages applied to products and orders based on their assigned tax categories and the customer’s geographical location. Tax rate is defined by the following key parameters:

* Name – A descriptive label identifying the tax rate.
* Code – A unique identifier used internally.
* Amount – The percentage value of the tax (e.g., 0.25 for 25%).
* Included in Price – Determines whether the tax is included in the product price.
* Calculator – The method used to compute the tax amount.
* Zone – The geographical area where the tax rate applies.
* Category – The tax category to which the rate belongs.

During checkout, SellStack can automatically determine and apply the correct tax rate based on the customer’s shipping address and the product’s tax category. This ensures that pricing remains accurate and compliant with regional tax regulations. Currently, SellStack doesn’t use this entity for tax calculation directly. Instead, SellStack has its own custom tax calculation implementation adapted for Lot THC values and state-level regulations.
