Taxes Recalculation controls how taxes and duties are handled when customers edit their shipping address. When a customer changes their address to a different state or country, the tax rate may change. This setting determines what happens in that scenario.
You'll find this at Settings > Taxes Recalculation.
Choose one of four modes to determine how Order Editing handles tax differences during address edits:
Mode | What It Does |
Default Shopify settings | Allow all edits to happen even if taxes were supposed to have been charged. This is the default behaviour if you were to edit an order manually in Shopify. |
Deny edits with different taxes or duties | Prevent customers from switching to a different state or country if it has a different tax rate. The customer will be limited to address edits that do not affect your tax compliance. |
Allow edits if the customer pays the difference | Allow customers to edit their shipping address even if it has a different tax rate. The app automatically charges customers the difference in taxes if the address is updated to a region with higher taxes. Collected taxes will appear on your Shopify orders. |
Allow edits with tax refunds and collection (Recommended) | Taxes and duties are recalculated prior to shipping address updates and customers will be sent back to checkout to pay the difference or receive a refund for their tax difference. This is the most complete option. |
💡 Not sure which to pick? We recommend Allow edits with tax refunds and collection. It handles both increases and decreases in tax, keeping you compliant without blocking your customers from making address changes.
✅ Example: A customer in Oregon (0% sales tax) changes their shipping address to California (7.25% sales tax) on a $100 order.
Mode | What Happens |
Default Shopify settings | The edit goes through. No additional tax is charged. You may owe the $7.25 difference. |
Deny edits with different taxes | The edit is blocked. The customer sees a message that this address change isn't allowed. |
Allow if customer pays the difference | The edit goes through. The customer is charged $7.25 in additional tax. |
Tax refunds and collection | The customer is sent to checkout to pay $7.25. If they moved from California to Oregon instead, they'd receive a $7.25 refund. |
Yes. Tax recalculation is triggered when a customer changes their shipping address to a region with a different tax rate. Product additions or removals use Shopify's standard tax calculation on the new line items.
If your store collects duties at checkout, the same logic applies. Duties are recalculated when the shipping address changes to a different country, depending on which mode you've selected.
Additional taxes collected through Order Editing appear directly on the Shopify order, the same as any other tax charge. They'll show up in your Shopify tax reports.
Yes. If you'd rather prevent cross-country address changes entirely, go to Settings > Address Editing and enable Restrict edits to original country. This is a simpler approach if you don't want to deal with international tax differences at all.
