Magento State wise TAX

Question

I need to setup TAX based on customer shipping state.

Example: If in the USA customer's shipping state is New York then TAX will be 14% otherwise for all state TAX will be 5.5%

I created 2 Tax Rate based on USA state but it's not working. Anything I forgot to do?

Answer 1

Tax will only working for "Taxable Goods". Make sure you change product information to taxable goods.