## Tax Rates

This section details how to manage and apply tax rates within Stripe, offering two primary approaches: automated calculation with Stripe Tax, or manual definition of tax rates.

### Automated Tax Calculation with Stripe Tax

For businesses seeking automated tax calculation without the need to define individual rates, Stripe Tax is the recommended solution. Stripe Tax automatically handles the complexities of tax calculation across numerous countries.

### Manual Tax Rates

Alternatively, Stripe allows for the manual definition of tax rates. This approach is suitable for scenarios where you have a fixed set of tax rates or are using a third-party tax provider without a native Stripe integration.

#### Creating Tax Rates

You can create and manage tax rates directly within the Stripe Dashboard. These rates can then be applied to invoices, subscriptions, and one-time payments processed through Stripe Checkout. It's recommended to create a comprehensive catalog of tax rates that align with the jurisdictions in which you operate.

#### Applying Tax Rates

Once created, tax rates can be applied in the following ways:

*   **On individual invoice items:** This provides granular control over tax application.
*   **On the entire subtotal of the invoice:** This is a simpler approach for straightforward tax needs.

Stripe calculates the total tax amount per tax rate and provides summary reports that can be exported.

#### Creating Tax Rates via API

The following example demonstrates how to create a tax rate using the Stripe API:

```bash
curl -X POST \
  https://api.stripe.com/v1/tax_rates \
  -u "sk_test_..." \
  -d "display_name=Sales tax" \
  -d "description=Sales tax" \
  -d "percentage=5.5" \
  -d "inclusive=false"
```

### Third-Party Tax Providers

For businesses using third-party tax providers such as Avalara, Anrok, or Sphere, Stripe offers native integrations. These integrations allow for automatic tax calculation for subscriptions and invoices, leveraging the capabilities of your chosen provider. You can find and install these integrations through the Stripe Apps Marketplace.