Hey @vmoore99,
The “Automated Taxes” feature is part of the WooCommerce Shipping & Tax plugin, so asking questions on that forum is a better approach in the future. Though, based on what you mentioned, it sounds like what you described is the expected behavior with Automated Taxes, as tax rates are typically only calculated when the customer’s shipping address is in the same state (in the US).
If you need to charge tax for out-of-state shipments, I’d recommend speaking with a tax professional that knows all of the current tax laws where you operate, so you can ensure that you are collecting sales tax on all the orders that should have that occur.
Automated Taxes helps get stores online and selling quickly but it is limited in what is possible (only allowing for a single nexus location, etc). Many sites need tax functionality that is more complex than that, so in those situations I recommend either setting up manual rates (in WooCommerce core) or using a dedicated tax plugin (like TaxJar or AvaTax).
