Set up Tax Zones

From admin dashboard go to Localization/Taxes => Tax Zones

Tax Zones are sometimes known as Geo Zones and are defined here as areas for the purpose of tax and shipping. The default Phoenix install has an example - the shop is located in Florida so only charges tax in Florida. A Tax Zone has been created and named Florida - open the Tax Zone (click on the Folder icon) to see the areas included in this Tax Zone - you will see United States