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Create a Tax Jurisdiction
To create a new tax jurisdiction:
Navigate to Taxes > Tax Jurisdictions in the main menu.
Click Create Tax Jurisdiction.
Fill in Code, Description.
Select the country from the list.
Select the state from the list.
Type in the Zip code ranges that should be covered by this tax jurisdiction (click +Add to capture additional range).
Click Save and Close.
Now that the tax jurisdiction is created, create a tax rule that associates this tax jurisdiction with other tax components (products, customers and tax codes).