In one states in a Country I need to apply 0% tax rate in both shipping tax and product tax. The default tax rate is 6%.

How can I do this? In Magento product only can apply a type of rule.

  1. Load in your tax rates and ensure they're entered by country, state and/or zip code
  2. Create a tax rule that uses the tax rates you've entered

Alternatively just use the TaxJar extension (https://www.taxjar.com/magento-sales-tax/) - it's free for Magento merchants.


You can follow the steps in here: Magento 1.9.3 : Different tax rate per country

It's just you need to create two tax rate and in your tax rule you have to select/choose the rates you created and change the Tax settings (System->Configuration->SALES->Tax) changed "Tax Calculation Based On" from "Shipping Origin" to "Shipping Address".

If you have any questions, please let me know.

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