How To Set Up Product Tax Classes In Magento 2

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One of the most important aspects of running an e-commerce store is handling taxes. Different products may attract different tax rates, so it’s crucial that you set up product tax classes correctly in Magento 2. Product tax classes are basically categories into which products are grouped, and each class can have a different tax rate. In this article, we’ll guide you through the process of setting up product tax classes in Magento 2.

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Step 1: Log in to your Magento 2 admin panel

To get started, you’ll need to log into your Magento 2 admin panel.

Step 2: Navigate to the Tax Classes menu

Once you’re logged in, navigate to the Stores menu in the sidebar. Then, click on Configuration, and finally, click on Tax. You’ll be taken to the Tax Classes page.

Step 3: Add a new tax class

To add a new tax class, click on the Add New Tax Class button on the top right of the page. A form will pop up where you can add the details of your new tax class.

Step 4: Name your new tax class

The first thing you need to do is name your new tax class. Give it a clear and concise name that accurately describes the products that will be in this class.

Step 5: Set the tax rate

Next, you’ll need to set the tax rate for this class. You can do this by selecting an existing tax rate from the dropdown list, or by adding a new one. If you need to add a new tax rate, click on the Add New Tax Rate link.

Step 6: Save your new tax class

When you’re done setting up your new tax class, click on the Save Class button to save your changes. Your new tax class will now be available for you to assign to your products.

Step 7: Assign products to your new tax class

To assign products to your new tax class, navigate to the Products menu in the sidebar and click on Catalog. Find the product you want to assign to your new tax class and click on it to open the product details page.

Step 8: Set the product tax class

On the product details page, scroll down to the Product Tax Class section. From the dropdown list, select the tax class that you want to assign to this product.

Step 9: Save your changes

When you’re done, click on the Save button to save your changes. The tax class for this product will now be set to the one you selected.

Step 10: Test your tax settings

Before you launch your store, it’s important to test your tax settings to make sure everything is working as it should. To do this, add some products to your cart and proceed to checkout. Check that the tax rate is correctly applied to each product based on its tax class.


Setting up product tax classes in Magento 2 is a crucial step in running an e-commerce store. By correctly categorizing your products and setting the right tax rates, you’ll be able to ensure that your store is compliant with local tax laws. Thanks to Magento 2’s user-friendly interface, setting up tax classes is a quick and straightforward process that can be completed in just a few clicks.

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