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

# Taxed States

## Overview

Sellers have the option to set up tax collection on a state-by-state basis.

<Frame>
  <img src="https://mintcdn.com/salesbricks/YgX7xKXDNNE09RCl/documentation/images/taxed-states/taxed-states.png?fit=max&auto=format&n=YgX7xKXDNNE09RCl&q=85&s=cab7adcd7dac1d9f42719020e05595d4" alt="list of taxed states" width="1606" height="1634" data-path="documentation/images/taxed-states/taxed-states.png" />
</Frame>

## Setup

**1.** Sellers can enable or disable tax collection settings through the Finance page:

**2.** Navigate to <a href="https://app.salesbricks.com/admin/settings/finance" target="_blank" rel="noopener noreferrer">Settings -> Finance</a>.

**3.** Edit the finance settings.

**4.** Locate the **Taxed states** section.

**5.** Toggle individual states on or off to enable or disable tax collection.

**6.** Save changes to update tax collection preferences.

<Warning>
  All **existing** sellers, by default, have sales tax collection **on** for all states.

  All **new** sellers, by default, have sales tax collection **off** for all states.

  Please read the **Actions** section below for more details and next steps.
</Warning>

## Actions

* **New sellers:** When a seller creates a new account on Salesbricks, tax collection is disabled for all states. They must navigate to the <a href="https://app.salesbricks.com/admin/settings/finance" target="_blank" rel="noopener noreferrer">Finance</a> page to enable tax collection in the states where they wish to collect taxes.
* **Existing sellers:** All states remain enabled for tax collection unless they choose to disable specific states manually.

## Impact of changing state tax settings

* Tax calculation is based on the **nexus** between your company's location and the state in which your customer is located.
* **Enabling a state:** When a seller enables tax collection in a state, the system will automatically begin collecting and remitting sales tax for transactions in that state.
* **Disabling a state:** When a seller disables tax collection in a state, sales tax will no longer be collected for transactions in that state.