How to Set Up Excise Taxes on Your Shopify Store
Step-by-step setup for excise taxes using Magical Fees & Tariffs on Shopify.
Overview
Excise Taxes: Excise taxes are government-imposed taxes on specific regulated products, charged per unit rather than as a percentage of price. They are common on alcohol, tobacco, fuel, and cannabis. Unlike sales tax, excise tax is often built into the product price or shown as a separate line item. Merchants selling these goods must charge the correct rate by product category and jurisdiction.
See it in action
Watch how Magical Fees & Tariffs handles this setup on a live Shopify store.
How to Collect Excise Taxes on Shopify
Setup steps
Follow these steps to get excise taxes on shopify running with Magical Fees & Tariffs.
Install Magical Product Fees
- 1
Install from the Shopify App Store
Visit the Magical Product Fees listing on the Shopify App Store and click "Add app" to install it on your store. The free trial gives you time to configure and test before committing.
- 2
Open the app and start a new fee
From your Shopify admin, go to Apps and open Magical Product Fees. Click "Create fee" to start setting up your first fee rule.
- 3
Choose your fee method
Select the Function Method (recommended for most stores — fees appear as part of a product bundle at checkout) or the Block Method (fees appear as separate line items — preferred for stores that need discounts to apply to fees).
How to Charge Excise Taxes on Shopify
- 4
Install Magical Product Fees
Install Magical Product Fees on your Shopify store. The free trial gives you time to configure your fees and test before committing.
- 5
Create excise tax rules
Create excise tax rules with the correct per-unit or percentage rate for your product category. Configure product and collection targeting so the tax applies only to alcohol, tobacco, cannabis, or other regulated goods.
- 6
Test with a sample order
Assign the excise tax rules to the applicable products or collections, place a test order, and verify the excise tax appears as a separate line item with the correct amount.
Want to learn more?
Explore the full details including regulations, comparisons, and pricing.
More setup guides
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Get Started on the Magical Fees Starter Plan
Get up and running with the Magical Fees Starter plan. Create your first fee rules, assign them to products, and test at checkout.
View setup →Quick Start: Magical Fees & Tariffs
Install Magical Fees & Tariffs on your Shopify store, choose a fee method, create your first fee rule, and test at checkout. This quick start guide covers everything you need to go live.
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