---
title: Setting Tax Rules & Rates
description: >-
  Learn how to set up tax rules and rates in Lab 50 using the US tax table
  database or custom rules for states, ZIP codes, and shipping.
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

You have two choices for tax rate set-up:

### 1. Use our tax table database (US only).

We use a tax table, which is updated on a regular basis, to calculate taxes, which are charged based on the delivery or pickup ZIP code. The tax database is updated 3 times a year and includes only US tax regions.

To enable use of the tax table:

1. In **Lab 50,** click **Store Management > Application Settings > double-click Photo Finale > check-box is on the General tab.**
2. Then click **Save** (left sidebar)

![](/images/store-setup/setting-tax-rules-and-rates/88473613.png)

### 2. OR, you can set your own tax rules

This can be either a single rate, or a ZIP-code based rate you enter yourself..  If you would like to set your own tax rules:

1. Disable the database tax table, as described above. **You must not have the database tax table enabled if you are going to define your own rules**
2. In **Lab 50,** click on **Store Management** > **Tax Rules**, then double-click on an existing rule to edit it or click on ***Create a new tax rule*** to setup a new tax option.

![Tax Rules](/images/store-setup/setting-tax-rules-and-rates/taxrules.jpg)

The configuration settings are the following:

- **Name:** Enter a name for each tax rule.
- **Tax description:** Select the type of tax rule you are creating.
- **Tax rate:** Set the Tax Rate for each State/Province or ZIP Code.
- **Tax shipping:** Select if shipped items to State/Province or ZIP Code are taxable.
- **Apply on top of other taxes:** Select this option if this tax is charged in addition to other taxes.
- **Apply to all orders:** Select whether or not this applies for all order types.
- **Apply to the selected states/provinces/regions:** Choose one or more states/provinces/regions with the same tax rate
- **Apply to the specified zip codes:** Add the ZIP Code(s) and apply this tax rule to orders from these specific areas.
- **Enabled:** Mark this tax rule as active.
- **Deleted:** Mark this tax rule as deleted.

**Canadian dealers should set up rules like this to cover GST and HST for the various provinces (check the rates, this screenshot is for demo only)**

![tax](/images/store-setup/setting-tax-rules-and-rates/tax.png)

# FAQ:

**Q:** Is there a way to tax items in shipped orders?

**A:** Yes. The setup depends on whether the dealer is using the US Tax Database, Tax Rules, or a Flat Tax.

With the US Tax Database, tax is automatically charged for shipped orders based on the zip code & county of the shipped order if the dealer has tax nexus in a state. By default they have tax nexus in every state that they have store locations (on our platform). If a dealer wants to charge tax in a state in which they don't currently have store locations, they can either add a dummy store location in that state (with "customer pickup" disabled) or they can give us a list of the states and we can set it in the database in a nexus override property (introduced in PF 13.5).

Since it would be a pain to create more than a few dummy stores, the new nexus override property is definitely the way to go. The override list needs to be a lowercase string of comma-separated postal abbreviations. Once you have it, send it to support with your dealer code please.

**Example:**   
"ca,co,dc,ga,il,in,ia,ky,la,md,me,mi,mn,nc,nd,ne,nj,nv,ok,ri,sd,ut,va,wa,wi,wv"

**Q:** Is there a way to see what taxes are configured in the Tax DB?

**A:** There's no way for the dealer to see it but we can run a query from the database and export to XLS for you.