Tax Recalculation controls what happens when a customer changes their shipping address and the new destination has different tax percentage rates. Shopify remains the source of the tax calculation.
You can choose the same tax preference from Shipping Address Edits, Address Validation, or Tax Recalculation Settings. Changing it on one page changes it everywhere.
Option | What it controls | What the customer experiences |
|---|---|---|
Use Shopify's default | Saves the shipping address without an Order Editing replacement checkout for tax-rate changes. | The customer completes the address edit in Order Editing. Shopify's normal order behavior applies. |
Deny edits with different tax rates | Prevents an address change when the destination has different tax percentage rates. | The customer cannot save that address through the editing flow. |
Collect tax increases automatically | Adds a positive tax difference to the existing edited order. It does not automatically refund a tax decrease. | The customer can continue without a replacement checkout. If more tax is due, the additional amount is included with the pending order edits. |
Refund and collect through checkout | Creates a replacement checkout whenever tax percentage rates change, including when the estimated tax total happens to stay the same. | The customer selects Continue to payment and completes Shopify checkout with the new address. The original order is cancelled and refunded only after the replacement order is completed and funded. |
In Order Editing, open App Settings.
Select Editing blocks.
Open Shipping Address Edits.
Find Tax Recalculation.
Select the option that matches how you want tax-rate changes handled.
The setting saves when you select an option.
With Refund and collect through checkout, Order Editing prepares a new Shopify checkout using the proposed shipping address. The checkout includes Shopify's recalculated tax and the shipping rate available for the new destination.
The original order and customer address are not changed just because the replacement checkout was created. If the customer leaves checkout, the original order remains in place. If the customer completes checkout, Order Editing replaces the original order and carries forward any selected customer-profile or subscription-address update.
The customer must complete the replacement checkout to finish the address change. Creating or opening the checkout does not complete the edit.
Use an existing controlled order that is still inside its editing window:
Open the customer editing experience for the order.
Change the shipping address to a destination with different tax percentage rates.
Confirm that the result matches the selected tax preference.
If you selected Refund and collect through checkout, select Continue to payment and review the new tax, shipping, and order total in Shopify checkout.
You do not need to complete payment to review the checkout totals. Complete a controlled checkout only when you need to verify the full replacement, cancellation, and refund workflow.
Order Editing does not set tax rates. Review your Shopify tax configuration when a result is unexpected.
Collect tax increases automatically handles positive differences only. Choose Refund and collect through checkout when customers also need tax decreases refunded through the replacement workflow.
A replacement checkout is not offered when no valid shipping rate is available for the new destination.
If the order is not eligible for replacement under your payment-capture settings, Order Editing blocks the address change instead of saving it without the configured tax handling.
If the Shopify order does not match the result shown during the edit, start a live chat from Order Editing. Include the store URL, order number, original destination, updated destination, and selected tax preference.
