Drupal - Setup Taxes

In general, tax is a financial charge upon a taxpayer or source of public revenue. Sales tax is a basic type for taxes that do not display inclusive with product prices.
You can specify the tax rate for the products as defined in the below steps:
Step (1): Go to Store and click on the Configuration.

Step (2): Next click on the Taxes link which manages tax rates and types.
Step (3): Click on the Add a tax rate link to add tax for the product.
Step (4): It will open the taxes window for adding tax rate to the product as shown below.
It contains some fields such as:

• Title: It is title of the tax rate.
• Display title: The front end display title of the tax rate shown to customers.
• Description: It is used to describe the tax rate.
• Rate: It is a percentage used to calculate the tax which is expressed as a decimal.
• Type: It selects the tax type for the tax rate using drop down menu.

After done with the settings, click the Save tax rate button.
Step (5): You will see the created tax rate name which is used for the product as shown in the screen below.
Step (6): Go to Home page and click on the View cart link to see the products in shopping cart.
Step (7): Click the Checkout button to see the tax rate added for the products.
Step (8): You can see the tax rate added along with the Subtotal as shown in the screen.