How to Turn On Sales Tax Collection

4 min read · Updated August 2026

Once you know you need to collect sales tax somewhere, turning it on in Thryft Ship takes just a few minutes. Here's the full walkthrough — from registering with your state to seeing tax show up at checkout.

TL;DR

Register with your state's tax authority first — Thryft Ship doesn't do this for you.
In your Accept Payments settings, turn sales tax on and add each state you're registered in.
Choose whether the tax is added on top for your buyer or absorbed into your prices.
From then on, the right tax is calculated automatically and shown as a line at checkout.

Not sure if you need this yet?Sales tax is optional and off by default — you only turn it on once you have a tax obligation somewhere. If you're not sure whether you do, start with When Do You Need to Collect Sales Tax? first.

Before you start: register with your state

This is the one step that happens outside Thryft Ship, and it has to come first. You register for a sales tax permit with the tax authority in each state where you have nexus. You can do this yourself on the state's website, or have an accountant or a registration service handle it. Once you're registered, you'll have the details you need to add that state in Thryft Ship.

No registration means no tax collectedThryft Ship only collects in states you've added and registered for. If you turn the setting on but haven't registered a state, no tax is charged there — so register first, then add the state.

Turning it on, step by step

Open your payment settings
Go to your Accept Payments settings in Thryft Ship. This is where your checkout options live, and where the new sales tax section appears.
Switch on sales tax collection
Find the Collect sales tax setting and turn it on. Nothing changes on your checkout until you do this and add at least one registered state.
Add the states you're registered in
Add each state where you've registered to collect. You'll enter your registration for that state so Thryft Ship knows it's active. You can add more states later as you register in new ones — just come back to this screen.
Choose who covers the tax and processing fee
You'll have two options here, and both are usually on by default: pass the sales tax to your buyer (the tax is added on top at checkout, which is how most sellers do it), and pass the small tax-processing fee to your buyer too. If you'd rather absorb either one into your own prices, you can turn these off — the tax still gets remitted either way, it just changes who visibly pays it.

What your buyer sees at checkout

Once it's on, buyers in a state you collect in will see a combined Taxes & Fees line on their checkout, right alongside the item subtotal and shipping. It's clearly labeled, so there are no surprises — their total simply reflects the correct tax for where they live. The exact rate is calculated by Stripe Tax, which you get direct access to through your own account, so it's always accurate and up to date.

Filing is still yours to doThryft Ship calculates and collects the tax and keeps clean records of what was collected. Actually filing and paying that tax to each state, on their schedule, is still up to you (or your accountant).

Common questions

Can I add more states later?

Yes. As you grow and register in new states, just come back to your Accept Payments settings and add them. Collection starts for each state as soon as you add its registration.

Can I turn it back off?

Yes, it's a setting you control. Keep in mind that if you still have an active obligation in a state, you're expected to keep collecting there — so only turn it off if your situation has actually changed.

Will this change tax on orders I already have open?

Sales tax applies to new checkouts once it's on. It doesn't reach back and change orders that were already placed.