> ## Documentation Index
> Fetch the complete documentation index at: https://spreecommerce.org/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax Categories

> Learn how to create and manage tax categories in Spree — the tax classes you assign to products.

A **tax category** is a tax class you assign to products. It does not set a percentage itself; it groups products by how they should be taxed, and a [<u>tax rate</u>](/docs/user/settings/tax-rates) then names the category and supplies the figure.

To manage tax categories, navigate to **Settings → Tax categories**, under the **Selling** group.

<img src="https://mintcdn.com/spreecommerce/9zUfSW0ZGFxN9fd6/images/user/settings/tax/6-tax-categories-overview.png?fit=max&auto=format&n=9zUfSW0ZGFxN9fd6&q=85&s=af6b94d600a371cc73797c0925993d33" alt="The Tax Categories overview page listing all configured tax categories" width="2584" height="888" data-path="images/user/settings/tax/6-tax-categories-overview.png" />

Tax categories organize your products based on how they're taxed.

For example, if you sell both clothing and electronics, you might create a **Clothing** category taxed at a reduced or exempt rate (common in regions where apparel gets special tax treatment) and a **Standard** category for electronics taxed at the full rate — each product is then assigned to whichever category matches how it should be taxed.

<Note>A product variant can only be assigned one tax category at a time.</Note>

The Tax Categories overview displays all existing tax categories with key information such as:

* **Name**: e.g., Standard, Reduced, Exempt
* **Tax Code**: Optional code for integrations or accounting
* **Description**: Internal notes on what this category covers
* **Default**: Whether this is the default category for new products

From here, you can add new tax categories or edit existing ones.

## Add a New Tax Category

To add a new tax category, click **New Tax Category** in the top-right corner. You'll be taken to the tax category creation form.

<img src="https://mintcdn.com/spreecommerce/9zUfSW0ZGFxN9fd6/images/user/settings/tax/7-new-tax-category-form.png?fit=max&auto=format&n=9zUfSW0ZGFxN9fd6&q=85&s=fcb4260619579f9d4d1f6ac4780bf41c" alt="The New Tax Category creation form" width="2584" height="1072" data-path="images/user/settings/tax/7-new-tax-category-form.png" />

Fill in the form with the relevant information:

* **Name** — A label for this tax category, e.g., Standard, Reduced, or Exempt.
* **Tax Code** — An optional code used by integrations or your accounting system to classify this category.
* **Description** — Optional internal notes on what this category covers.
* **Default** — Whether new products should automatically be assigned this tax category.

Once the data has been entered, click **Create** to save the new tax category.

This category will now be available for assignment to products and tax rates.

<Note>A tax category charges nothing on its own. Until a tax rate names it, products carrying it are not taxed.</Note>

## Edit a Tax Category

To edit a tax category, click its row in the Tax Categories overview, update the fields as needed, then click **Update** to save your changes.

<Note>You can switch the default tax category if needed, but only one can be default at a time.</Note>

## Delete a Tax Category

To delete a tax category, open its edit form and click **Delete** in the lower-right corner.

## Related

* [<u>Settings → Tax Rates</u>](/docs/user/settings/tax-rates)
* [<u>Settings → Markets</u>](/docs/user/settings/markets)
