Quick Answer
Shopify does not natively support charging itemized excise taxes or regulatory fees, which can lead merchants to adopt workarounds that create pricing and reporting issues. If these fees are mandated, every order you process without one increases long-term cleanup and compliance risk. Magical Product Fees is a Shopify app that solves this by automatically applying clear, rule-based fees to the right products, and to customers in the right locations, without changing product prices or adding manual work.
Watch: How to Add Excise Taxes on Shopify (40-second video)
https://www.youtube.com/watch?v=-U7XNbfWjtg
Why Excise Taxes are Difficult to Add on Shopify
Shopify doesn’t have a native feature to add mandatory fees to certain products or orders. If you have to charge excise taxes or regulatory fees, one workaround is to bake those fees into product prices, but this hides required line items, creates pricing confusion, and makes it harder to separate fee revenue from product revenue. For merchants in regulated categories, that lack of itemization turns every affected order into a potential compliance issue.
The Easiest Way to Add Excise Taxes on Shopify
Compliance risks compound over time. Each order placed without a properly itemized fee increases the chance of back taxes and audit problems. Using an app like Magical Product Fees is the easiest way to apply transparent, rule-based fees automatically. You can set up rules that charge fees based on specific products and collections, and you can set it so that fees only apply to customers in specific states and provinces.
3 steps to add excise taxes on Shopify
1. Install Magical Product Fees
Install Magical Product Fees on your Shopify store. You can try the app for free for 14 day to give you time to set it up.
2. Create excise tax rules
In the app, create a rule for each excise tax you need to charge. Choose whether the fee is fixed or percentage-based, decide which products, orders, or collections it applies to, and specify whether it should only be charged to customers in certain states or provinces.
3. Activate the app
In one click, you can activate the app on your store so the fees begin to automatically display on product pages, in the cart, and in a separate line at checkout. The fee will automatically be collected when the customer pays.
Supporting Answers
Can I Add Excise Taxes Directly on Shopify?
Shopify's tax settings only allow for sales tax configuration, not additional excise or regulatory fees. The only native workaround is to include the fee in the product price, but this can cause accounting and transparency issues.
Using an app like Magical Product Fees is the best way to charge these fees, as you can apply them to the products and collections that require them, and they will be displayed on product pages, shopping carts, and at checkout for maximum fee transparency.
What Products Require Excise Taxes and Regulatory Fees?
Excise taxes and regulatory fees typically apply to:
- Alcohol and tobacco products- Cannabis and vaping products- Environmental fees on electronics, tires, and batteries- State-mandated recycling or eco fees
Failure to charge these fees correctly can result in penalties and fines, depending on local regulations. In California, for example, businesses that do not itemize required excise taxes may face compliance violations, which can lead to significant fines and legal repercussions. Ensuring that these fees are properly applied and reported is essential for merchants operating in regulated industries.
Why Add Excise Taxes as Separate Fees?
Some excise taxes must be separately stated on receipts or invoices to comply with regulations. For example, in California, tire sales require a mandatory excise tax of $1.75, which must be listed separately, as outlined in Section 42885 of the California Public Resources Code. Failure to do so could result in non-compliance penalties.
In situations where itemization is not legally required, separating excise taxes as line items still offers benefits:
- Customers can clearly see what they’re paying for, which builds trust.- Merchants simplify tax remittance by keeping excise fees separate from product prices.
How Do I Ensure Fees Are Applied Correctly?
In the Shopify Community forums, a Shopify employee goes over how you can set up a tax override that charges customers an additional tax, however this method will not itemize the excise tax and therefore will appear as one aggregate tax at checkout. This lack of transparency could lead to customer confusion.
A more reliable solution is using an app like Magical Product Fees, which allows you to configure fees based on specific products or categories. This ensures the correct amount is charged automatically, reducing the risk of miscalculations and non-compliance while improving transparency for customers.
Real-Life Experience
Last year, I worked with a merchant in Illinois who was setting up excise taxes for a vape store. She was adamant that the fees be set up correctly, as there would be significant fines if she failed to remit taxes properly. I was able to loop in my team to help her get everything configured, and she expressed gratitude for not having to worry about fees anymore. This serves as an example of why using an app with dedicated support is the best approach to managing excise taxes on Shopify.-Kyle Godon, Shopify App Expert
Always label deposits separately for compliance
Display bottle deposit fees as a clearly labeled, separate line item at checkout and on receipts. This meets regulatory transparency requirements, builds customer trust by showing exactly what they're paying, and makes it significantly easier to track deposits for reporting and audits. Use a clear label like "Bottle deposit" or "Container deposit (CRV)" so customers immediately understand the charge.
“Magical Fees is the only fee app that allows you to apply a fee based on a specific or individual state/province situation. All the other apps we tested only allow 'Location' (the entire country) which is a major limitation. The solution Magical Fees applies during the Cart to Checkout process is very smart and not a hassle. Very easy app to setup and the support was great.”