When you sell items online, some of your customers may owe taxes on their purchases. Whether you need to collect sales tax depends on where both you and your customers are located.
If your customers are in the same state as the physical location of your business, they owe sales tax on items they purchase from you. For instance, if you have a presence in Texas, you'll need to collect sales tax for all sales made in Texas.
To set up taxes in your store:
Any sales made in the same state as the state you have designated in your shipping address will have this tax rate applied.