Stripe offers two ways to calculate tax on your Checkout Sessions: Stripe Tax and Tax Rates.
Stripe Tax is a paid product that automatically calculates tax on your transactions without the need to define the rates and rules. Fees only apply after you’ve added at least one location where you’re registered to calculate and remit tax.
Tax Rates is a free feature that allows you to define any number of tax rates to be applied to invoices, subscriptions, and one time payments using Checkout. Stripe won’t create or maintain any Tax Rates on your behalf.
Stripe Tax allows you to calculate the tax to collect on your one time and recurring payments when using Checkout. You can enable Stripe Tax in Checkout Sessions so that it automatically computes taxes on all purchases and subscriptions created by Checkout. This guide assumes that you’ve integrated Checkout. If you haven’t, see the guide.