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Optimizely <<product-name>> can be configured in various ways to handle the computation of taxes:

  • <<product-name>> native capabilities to manage taxes are used

  • External third-party tax engines are used (that is Avalara, Cybersource).

The system can be configured to use any of these taxation strategies across all sites within the <<product-name>> platform. The taxation strategy is managed at the application level and can not be configured uniquely per website. Using the following **Application Settings** (**Admin Console** \> **Administration** \> **Application Settings**)To select the tax calculator, go to the **Admin Console** \> **Administration** \> **System** \> **Settings**, search for "Tax Calculator" and then choose the desired option:

<table class="TableStyle-Borders" style="margin-left: 0; margin-right: auto; width: 100%;" data-cellspacing="0"> <colgroup> <col style="width: 25%" /> <col style="width: 25%" /> <col style="width: 25%" /> <col style="width: 25%" /> </colgroup> <thead> <tr class="header TableStyle-Borders-Head-Header1"> <th class="TableStyle-Borders-HeadE-Regular-Header1"><p>Setting</p></th> <th class="TableStyle-Borders-HeadE-Regular-Header1"><p>Tax Calculator Value</p></th> <th class="TableStyle-Borders-HeadE-Regular-Header1"><p>Value for</p> <p>Avalara</p></th> <th class="TableStyle-Borders-HeadD-Regular-Header1"><p>Value for</p> <p>CyberSource</p></th> </tr> </thead> <tbody> <tr class="odd TableStyle-Borders-Body-Row1"> <td class="TableStyle-Borders-BodyB-Regular-Row1"><p>Tax Calculator</p></td> <td class="TableStyle-Borders-BodyB-Regular-Row1"><p>"Standard" or "DualRate"</p></td> <td class="TableStyle-Borders-BodyB-Regular-Row1"><p>Avalara</p></td> <td class="TableStyle-Borders-BodyA-Regular-Row1"><p>CyberSource</p></td> </tr> </tbody> </table>


Some external tax services may require additional setup, as such, see the related service provider articles. We do not provide documentation on all providers.

If <<product-name>>'s native **Taxation Engine** is configured, there are 3 distinct areas for additional configuration:

  1. Website Level to determine the actual Tax Calculation Strategy for each site.

  2. Depending on the chosen Tax Calculation Strategy, state tax records need to be configured.

  3. Optionally, local tax records can also be configured.

## Configure tax calculation strategy

Use these steps to update the Tax Calculation Strategy:

  1. Go to **Admin Console** \>**System** \> **Settings**.

  2. Search for **Tax Calculation**.

  3. If the **Tax Calculator** field is not set to **Standard**, a message is displayed stating the field is only accessible when **Standard** is selected.

  4. There are three strategies within the **Tax Calculation** menu:

    • **None** – Sales tax will not be charged. This is the default value.

    • **Percent** – The defined percentage of the order total will be charged as sales tax for all orders.

    • **Calculate** – Sales tax will be calculated using the configured tax rates based on the customer order. Default value: None

  5. Select **Save**.

## Set state tax rates

If **Calculate** was selected, in the **Calculate** field (see the **Configure Tax Calculation Strategy** topic above), update the **State Tax Rates** (based on State):

  1. Go to **Admin Console** \> **Websites**

  2. Click **Edit** for the desired Website.

  3. Click the **States** finger tab.

  4. Click **Edit** for the desired state.

  5. Review the information in the **Tax Information** section.

The **Tax Information** section contains the following applicable tax fields:

  • **Taxable** – Toggles if the state is taxable

  • **Tax Code** – State Code for Tax

  • **Tax Rate** – Percentage tax rate

  • **Tax Freight** – Defines whether or not the shipping charge is included in the taxable total. If checked, tax will be charged on the shipping charge.

  • **Handling Amount** – Adds a base handling amount to transactions.


<<product-name>> supports non-taxability at both the BillTo and ShipTo. If the BillTo is non-taxable, none of the ShipTo's will be taxed. If the BillTo is taxable and a given ShipTo is non-taxable, the non-tax status of the ship-to is honored.

## Optionally configure local tax rates

Local taxes allow you to capture City, County, Transit and Special Purpose Sales and Use tax based on Zip Codes. Consult your tax authority for the requirements regarding your local taxing jurisdiction. To make use of this option, the generic tax calculator is required, as opposed to using Avalara, CyberSource, or Sx, and the Local Tax Rate entity needs to be enabled within the Application Dictionary.

The Local Tax configurations contain the following parameters:

  • **Postal Code** – Postal Code to which the tax rate applies

  • **Tax Code** – ERP specific tax code


    This code must match the tax code within your ERP.

  • **Tax Rate** – Percentage of order to use in tax calculation

  • **Tax Freight** – Indicates that freight/shipping charges are to be included in tax calculations