Hi @jordanwebdev ,
The local tax tables won’t update when automated taxes are enabled. Instead the live tax rates are checked via an API.
As a test, I changed the Store address to a US-based one, and it worked when I entered an address in the same state. It did not work when I tried to ship to an address in another US State.
This is by design. If your store is based in the United States, you only need to collect sales tax from customers in locations where you have a “tax nexus,” which typically means a physical presence. WooCommerce Services uses your store address as your “tax nexus” and only charges taxes within that state.
For Canadian addresses, it’s no problem no matter what address I put in. It works every time.
So how do I get it to work with a Canadian store address sending to US addresses?
Since the store if outside the state, sales taxes aren’t collected. This also applies to shipments from Canada to the US.
WooCommerce Tax does only work with a single tax nexus as that covers the majority of stores. You can also have a Tax Nexus in another state if you exceed a certain yearly dollar value or order total to another state. If you are unsure of your tax nexus status, please consult a certified local accountant.
If you need to charge tax for any US state, you can add a tax rate for that state in addition to using automated taxes to charge customers from that state tax as well.
For more information about State Tax Nexus and Destination Tax rules, please have a look at: State-by-state guide to economic nexus laws.
If you do have multiple tax nexuses, you may need a different extension like TaxJar or AvaTax .
I do recommend consulting a tax professional to make sure the setup fits the particular tax requirements for your shop.