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PayPal - State Sales Tax

Collect sales tax by adding it by state or international in your PayPal account

Sales tax can be set up in your PayPal account or by using FASO's Custom Tax Rate feature.

For how to use the FASO's Custom Tax Rate feature, see this FAQ:
Custom Sales Tax

The following info outlines the process in PayPal.

NOTE: PayPal tends to change their steps regularly without informing us. We try to keep up, but if these steps no longer work, please refer to PayPal's Help center. Also, they have reported that they have issues with Chrome. If you are experiencing issues with PayPal, try using another browser.

Do this by state or zip code, in your PayPal Account Settings. You'll need to know the tax rate ahead of time. PayPal won't figure it out for you.


  • Login to your PayPal account
  • Hover over your name and click Account Settings
  • Click Payment preferences
  • Click Update

  • Click Add Another Sales Tax

  • Select State or Zip Code
  • Select or enter your choice
  • Add the Tax Rate in the box
  • Click to Create Another
  • Click Continue

FYI: When the buyer goes to check-out, sales tax is added after they arrive at PayPal.

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