“Shipping tax class” setting not working?

I need to configure WooCommerce Tax to apply sales tax to shipping charges. I’m configuring a website selling physical goods (taxable) and digital goods (not taxable) in California. The tax plugin is calculating rates correctly for both types of goods; it’s only failing to tax shipping. (See cart screenshot with 10% tax rate.) I would expect that having “Shipping tax class” set to “Standard” (see screenshot) would make the sales tax apply to shipping charges, but that’s not the case for me. I have not added any additional tax classes to the settings. WooPayments is currently in test mode, if relevant. For what it’s worth, the Shipping tax class pull-down selector can not be set to anything but “Standard” (even if I add an additional tax class). I have tested manually ticking the checkbox in the shipping column for a zip code’s rates shown in the “Standard” tax rates table, and, while this will work for the zip code in question, it’s not a proper solution because WooCommerce Tax only adds rates for a zip code once that zip code has been entered by a customer in checkout. Have I done something wrong? Perhaps my tax setup has been corrupted? Hi @alexanderbailey , Thank you so much for reaching out and for providing such a clear explanation along with the screenshots, that really helps. I totally understand issues like this one can be confusing. Could you please try clicking on the Shipping tax class setting and change it to “Based on cart items”? After saving the changes, let me know if the tax calculation at checkout updates correctly. Also, I’d like to confirm whether your shipping methods are set as taxable. How were these shipping methods created, through WooCommerce’s default settings or using a third party shipping plugin? Hi @mosesmedh , Thanks for jumping in here. Could you please try clicking on the Shipping tax class setting and change it to “Based on cart items”? After saving the changes, let me know if the tax calculation at checkout updates correctly. As long as this plugin (WooCommerce Tax) is enabled, the dropdown shows “Standard” and can’t be changed. Curiously, if I disable the plugin and reload the Tax tab in WC’s settings, the dropdown becomes editable and offers all the expected options, including “Based on cart items”. Unfortunately, even after saving the setting as “Based on cart items”, Shipping tax class will revert to standard once WooCommerce Tax is re-enabled. This is unexpected, right? I went through a cycle or two of disabling, deleting and reinstalling WooCommerce Tax to see if it made a difference, but it’s still the same. (The delete/reinstall cycle emptied the tax tables, so I assume it was a decent reset for the tax plugin.) Also, I’d like to confirm whether your shipping methods are set as taxable. How were these shipping methods created, through WooCommerce’s default settings or using a third party shipping plugin? Confirmed: my Media Mail shipping method (created via WC Settings > Shipping > Shipping zones > zone: “USA”) has Tax status = Taxable. Additionally, I’m using a plugin ( Multi-Carrier Shippo Shipping Rates & Address Validation for WooCommerce ) to get other US and all international rates. I tested disabling this plugin just now with no effect on sales tax calculations. Hi @alexanderbailey , Thank you for getting back to us and for explaining the issue in detail. I completely understand how frustrating and confusing situations like this can be. Before we continue troubleshooting, I’d like to get a better understanding of your site’s setup. Please share your system status report by going to WooCommerce > Status > Get system report > Copy for support, and then paste it on Pastebin and share the link here. Hi there, Since we haven’t heard back, I’ll mark this as resolved for now. We’re here if you need us!