Taxes not applying 1.90

So I read your documentation thoroughly and I cannot get taxes to show up for the two states I put tax rates in. I selected calculate on ship to address. When I go to check out NO tax value is displaying. The documentation could be a bit more concise. It only tells you what the values are, but nothing like a step by step instruction on how to add a tax rate and make it show up on the public store. Most of the documentation states the obvious but not how it works.

1. In settings I defined my default state and checked  "Display all applied tax rates"
2. I set "Tax By Country & State"  as my default.
3. In edit mode / configuration of "Tax By Country & State" I added two states and the tax percentages.
4. Saved

Now nothing shows up in public store from either Illinois or California.

Am I missing a step?

Have you set a tax category for your products (variants)? If the shipping address ("Tax based on" setting) or product variant's tax category doesn't match a tax rate entry in the "Tax By Country & State" tax provider , then no tax will be displayed.

When adding a new tax rate for the "Tax By Country & State" tax provider, a "Tax class" (note that tax class and tax category are used interchangeably in the admin) is selected to define a tax percentage for products in that tax class. If you have multiple tax classes (Administration > Configuration > Tax > Tax Classes), you will need to create a tax rate entry ("Tax By Country & State" tax provider) for each tax class that is taxable for the state. To then have the tax percentage applied to the product, it needs to have a tax category selected in product variant details.

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Ah thats it. So I setup the tax rates like this

Tax Categories
Sales Tax-IN-IL-CA
Sales Tax-IL-IN

In IN IL CA I placed a percentage for each state.
Then for IL-IN category I only included IN and IL tax rates.

In product A shipping to california I selected in the variant Sales Tax IL-IN-CA category
See some of my California product is taxable and others are not.
In Product B I selected Sales Tax IL-IN for the category for the product to ship to California

Is this the right setup if I want to have some products that ship to CA that are taxable and others that are not?

That configuration looks correct for your situation: some products that are non-taxable in one state (CA), but taxable in other states (IL and IN).

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My problem now is the sales tax is appearing to a guest that is not logged in yet. Isnt sales tax supposed to only apply once a shipping address is entered?

If a customer doesn't have a shipping address set, then tax is calculated using the "Default Country", "Default State/Province", and "Default Zip/Postal code" that are set in Administration > Configuration > Tax > Tax Settings. To prevent tax being displayed when the shipping address hasn't been selected/entered, you need to clear these fields (select "Select Country" for the "Default Country" DDL).

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