> ## 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.

# Tax %: Sales Tax as Share of Revenue

> Track sales tax collected as a percentage of total revenue. Estimate effective tax burden across markets and monitor tax compliance for your Shopify store.

<Tip>
  The percentage of total revenue that comes from sales tax collected.
</Tip>

## Formula

<Info>
  **Tax %** = **Tax Collected** ÷ **Total Revenue** × 100
</Info>

### Formula Components

| Metric                                                               | Definition                                                             |
| -------------------------------------------------------------------- | ---------------------------------------------------------------------- |
| [**Tax Collected**](/reference/metrics/orders/adjustments/tax)       | Total sales tax collected from customers across all orders             |
| [**Total Revenue**](/reference/metrics/orders/revenue/total-revenue) | Total dollar amount collected from orders including shipping and taxes |

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

***

## Example

Your store collected **\$8,450** in sales tax from **\$105,625** in total revenue this month:

| Region     | Tax Collected | Total Revenue | Tax %    |
| ---------- | ------------- | ------------- | -------- |
| California | \$5,200       | \$65,000      | 8.0%     |
| Texas      | \$2,100       | \$26,250      | 8.0%     |
| Oregon     | \$0           | \$14,375      | 0.0%     |
| **Total**  | **\$8,450**   | **\$105,625** | **8.0%** |

***

## How It Works

Tax % divides total tax collected by total revenue and multiplies by 100. This shows what share of customer payments goes toward sales tax. It reflects weighted average tax rates across all orders and jurisdictions.

***

## When to Use

| Scenario                      | Action                                            |
| ----------------------------- | ------------------------------------------------- |
| Comparing regional tax burden | Identify markets with higher effective tax rates  |
| Estimating tax liability      | Forecast sales tax obligations for planning       |
| Pricing strategy              | Understand how tax affects customer-facing prices |
| Compliance monitoring         | Track tax collection trends over time             |

***

## Related Metrics

| Metric                                                               | Relationship                            |
| -------------------------------------------------------------------- | --------------------------------------- |
| [Tax Collected](/reference/metrics/orders/adjustments/tax)           | The numerator in this calculation       |
| [Total Revenue](/reference/metrics/orders/revenue/total-revenue)     | The denominator in this calculation     |
| [Tax Per Order](/reference/metrics/orders/adjustments/tax-per-order) | Average tax amount per individual order |

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