> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Returning Customer Tax Per Order: Average Tax on Repeat Purchases

> Track average tax collected per returning customer order. Analyze tax liability on repeat purchases and compare retention economics across regions.

<Tip>
  Average tax amount collected per returning customer order.
</Tip>

## Formula

<Info>
  **Returning Customer Tax Per Order** = **Returning Customer Tax Collected** ÷ **Returning Customer Order Count**
</Info>

### Formula Components

| Metric                                                                                               | Definition                                         |
| ---------------------------------------------------------------------------------------------------- | -------------------------------------------------- |
| [**Returning Customer Tax Collected**](/reference/metrics/orders/adjustments/returning-customer-tax) | Total tax collected from returning customer orders |
| [**Returning Customer Order Count**](/reference/metrics/orders/counts/returning-customer-orders)     | Total orders placed by returning customers         |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Currency                    |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your store collected **\$4,320** in tax from **540 returning customer orders** in May:

| Metric                    | Value      |
| ------------------------- | ---------- |
| Returning Customer Tax    | \$4,320    |
| Returning Customer Orders | 540        |
| **RC Tax Per Order**      | **\$8.00** |

***

## How It Works

This metric divides total tax collected from returning customers by their order count. Returning customers often purchase higher-value items, leading to higher per-order tax amounts. Compare against new customer tax to understand how buying patterns evolve after the first purchase.

***

## When to Use

| Scenario              | Action                                                                   |
| --------------------- | ------------------------------------------------------------------------ |
| Retention economics   | Factor tax into true cost of repeat orders for LTV calculations          |
| Regional segmentation | Identify which markets have higher tax burdens on loyal customers        |
| New vs. returning     | Compare against new customer tax to spot purchasing evolution            |
| Pricing strategy      | Understand how tax affects total order cost for price-sensitive segments |

***

## Related Metrics

| Metric                                                                                           | Relationship                                              |
| ------------------------------------------------------------------------------------------------ | --------------------------------------------------------- |
| [Tax Per Order](/reference/metrics/orders/adjustments/tax-per-order)                             | Average tax across all customer types—baseline comparison |
| [New Customer Tax Per Order](/reference/metrics/orders/adjustments/new-customer-tax-per-order)   | Compare new vs. returning customer tax behavior           |
| [Returning Customer Tax %](/reference/metrics/orders/adjustments/returning-customer-tax-percent) | Tax as a percentage of returning customer revenue         |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)