---
title: "Understanding the Tax rule setting in PrestaShop 1.5"
description: "When setting the prices for your products in PrestaShop 1.5, you have the ability the assign a Tax rule. Tax rules are predefined percentages to charge for taxes. For example, PrestaShop 1.5 includes..."
url: https://www.inmotionhosting.com/support/edu/prestashop/tax-rule/
date: 2012-08-20
modified: 2021-08-16
author: "Brad Markle"
categories: ["Prestashop"]
type: post
lang: en
---

# Understanding the Tax rule setting in PrestaShop 1.5

When setting the prices for your products in PrestaShop 1.5, you have the ability the assign a **Tax rule**. Tax rules are predefined percentages to charge for taxes.

For example, PrestaShop 1.5 includes a tax rule of **US-VA Rate (4%)**, which means this product is being sold in Virginia and should have a 4% tax added to the total.

 

## An example of a Tax Rule being used

[![when-setting-a-tax-rule](https://www.inmotionhosting.com/support/wp-content/uploads/2012/08/edu_prestashop1.5_add-product_when-setting-a-tax-rule.gif)](/support/wp-content/uploads/2012/08/edu_prestashop1.5_add-product_when-setting-a-tax-rule.gif)

In our testing, we [added a product](/support/edu/prestashop/add-product/) and set the [Pre-tax retail price](/support/edu/prestashop/pre-tax-retail-price/) to $15.99. We then set the Tax rule to **US-VA RATE (4%)**. 4% of $15.99 is 0.6396, so our total price after tax for this product should be 16.6296, or $16.63 when rounded up.

As you can see in the screenshot to the right, this is the exact amount that PrestaShop 1.5 calculated for the product after tax.

## Setting a Tax Rule in PrestaShop 1.5

1. [Log into your PrestaShop 1.5 dashboard](/support/edu/prestashop/login-to-dashboard/)
2. In the top menu, hover over **Catalog** and then click **Products**
3. Find the product you want to apply a tax rule to in the list of products, and then **click the edit icon** (*pencil icon*) to the far right of the product
4. Click the **Prices** link in the left menu
5. Next to **Tax Rule:** select a tax rule from the drop down menu and then click the **Save** button in the top right menu