---
schema_version: "1"
id: 5f24c10dd3f0ab62470deaaecf0e05ccded105e50699bb640a1b76bbc7aac325
title: Configure Tax Rates
collection: admin
version: current
locale: en-us
portal_url: https://docs.salesforce.com/admin/current/en-us/ind/264-0-0/billing_tax_rate_configure.md
canonical_url: https://help.salesforce.com/s/articleView?id=ind.billing_tax_rate_configure.htm&release=264.0.0&type=5
source_site: help.salesforce.com
content_type: documentation
content_hash: b08c83bfc3e4dba3be016a8dde5a9e27418853dd2492994c201dce52df8cec66
description: Use the Revenue Standard Tax Engine to calculate taxes natively in Revenue Management. Define tax rates and use the built-in decision table to determine applicable taxes for products.
products:
  - Revenue Cloud
release: "264"
---
# Configure Tax Rates

Use the Revenue Standard Tax Engine to calculate taxes natively in Revenue Management. Define tax rates and use the built-in decision table to determine applicable taxes for products.

### Required Editions

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small edition"><colgroup><col></colgroup><tbody><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: Lightning Experience</td></tr><tr class=""><td class="slds-cell-wrap" style="vertical-align:top;">Available in: <strong>Enterprise</strong>, <strong>Unlimited</strong>, and <strong>Developer</strong> Editions with <a href="https://help.salesforce.com/s/articleView?id=ind.revenue_licenses_areas_and_features.htm&amp;release=264.0.0&amp;type=5">the Revenue Cloud Advanced license or the Revenue Cloud Billing license</a></td></tr></tbody></table>

<table class="slds-table slds-table_bordered slds-max-medium-table_stacked slds-m-bottom_small permission">
        <colgroup>
          <col style="width:50%">
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        <thead class="slds-text-title_caps ">
          <tr class="">
            <th scope="colgroup" class="slds-cell-wrap" colspan="2" style="text-align:center;vertical-align:top;" id="d112455e75">User Permissions Needed</th>
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        <tbody>
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            <td data-label="User Permissions Needed" class="slds-cell-wrap" style="vertical-align:top;" headers="d112455e75 ">To configure tax rates:</td>

            <td class="slds-cell-wrap" style="vertical-align:top;" headers="d112455e75 ">
              <p style="margin-bottom:0;">Tax Admin permission set</p>
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To streamline tax rate configuration, make sure to provide sharing access and sharing rules for the Geo Country and Tax Rate objects.

1. From the App Launcher, find and select **Tax Rates**.
2. Click **New**.
3. Verify that the rate application is set to Revenue Management.
4. Enter a tax code.
    
    The tax code defined here is used in tax treatment and tax treatment item records to determine how the tax rate is applied. Make sure that the same tax code is consistently referenced across tax configurations so the correct rate is applied during transaction processing.
5. Enter the geo country or geo state where the rate applies.
    
    Geo Country and Geo State records must be created with the correct [ISO code](https://help.salesforce.com/s/articleView?id=xcloud.admin_state_country_picklists_overview.htm&type=5&language=en_US).
6. Select a currency ISO code.
    
    This field is available for multi-currency orgs only. If you’re unable to view this field, add it from the page layout.
7. Enter the tax rate as a percentage or flat amount.
    
    Revenue Management doesn’t validate tax percentage or flat tax amount values. Make sure that the tax percentage is greater than 0% or the flat tax amount is a positive value.
8. Select the application basis.
    
    See [Understand How Revenue Management Determines and Applies Tax Rates](https://help.salesforce.com/s/articleView?id=ind.billing_standard_tax_rate_application.htm&release=264.0.0&type=5 "When you use the Revenue Standard Tax Engine, Revenue Management calculates taxes for transactions by matching the transaction record field values to the configured tax rates. These values include the shipping address, product code, legal entity, and currency ISO code. You can also match custom tax rate fields. Revenue Management uses the Revenue Standard Tax Entries decision table, or a cloned decision table that you associate with the tax engine, to perform this matching.") section to know how the gross and net taxes are used in tax calculation.
9. Enter a priority.
    
    When multiple tax rates match a transaction, Revenue Management uses this value to determine the execution order. Lower values run first, with priority 1 taking precedence over priority 2 and so on.
10. Enter the product code if the tax rate is specific to a product.
    
    You can find the product code from the respective products in your Salesforce org. For example, the invoice line includes a reference to the associated product. The product code specified here is matched against the product code on the transaction to determine the applicable tax rate.
11. Enter the start date and end date to define the validity of this tax rate record.
12. Select a legal entity.
    
    Revenue Management doesn’t mandate a legal entity entry, but you must add one to manage and map tax rates to transactions by legal entity.
13. If you created custom fields on the Tax Rate object for additional matching criteria, enter values for those fields.
14. Save your changes.
    
    Check for and refresh the Revenue Standard Tax Entries decision table every time a tax rate record is modified or added in your Salesforce org. If you cloned the decision table, activate and refresh the cloned table. See [Refresh a Decision Table](https://help.salesforce.com/s/articleView?id=ind.bre_refresh_decision_table.htm&type=5&language=en_US).

[Create a Tax Engine](https://help.salesforce.com/s/articleView?id=ind.billing_tax_engine_create.htm&release=264.0.0&type=5 "Create a tax engine record that Billing uses to calculate tax. Set the type to Revenue Standard Tax Engine. When you extend the Revenue Standard Tax Engine, associate a custom metadata type and a decision table.") record with the type set to Revenue Standard Tax Engine. If you use custom tax rate fields, extend the decision table and associate it with that tax engine. See [Extend Your Revenue Standard Tax Engine](https://help.salesforce.com/s/articleView?id=ind.billing_extend_revenue_standard_tax_engine.htm&release=264.0.0&type=5 "Apply tax rates based on custom attributes, such as product category, customer attributes, or exemption criteria, without writing Apex code. Use a custom metadata type to map billing transaction fields to a cloned Revenue Standard Tax Entries decision table, and persist matched values on invoice and credit memo tax lines."). Next, create the [Tax Policy and Tax Treatment](https://help.salesforce.com/s/articleView?id=ind.billing_tax_policies_and_treatments_create.htm&release=264.0.0&type=5 "Create tax policies and their treatments to define the tax calculation for your invoices.") records, making sure the Tax Treatment references the tax engine record with type set to Revenue Standard Tax Engine. Finally, assign the appropriate tax policy to the relevant products.

To maintain consistency and data integrity with country and state values that are used in addresses, it’s recommended to enable State and Country picklists. See [Enable State and Country/Territory Picklists](https://help.salesforce.com/s/articleView?id=xcloud.admin_state_country_picklist_enable.htm&type=5&language=en_US), [Create Geo Countries for the Manual Salesforce Tax Solution](https://help.salesforce.com/s/articleView?id=commerce.comm_create_geocountries.htm&type=5&language=en_US), and [Create Geo States for the Manual Salesforce Tax Solution](https://help.salesforce.com/s/articleView?id=commerce.comm_create_geostates.htm&type=5&language=en_US).

If a legal entity address was saved before State and Country/Territory Picklists were enabled, Country Code and State Code aren’t filled in automatically. See [Create Legal Entities](https://help.salesforce.com/s/articleView?id=ind.billing_create_legal_entities.htm&release=264.0.0&type=5 "Create legal entities to manage the billing and tax information for order products.").