Platform update · Shopify
Shopify Tax free discount will no longer reset annually
Starting January 1, 2027, the Shopify Tax free discount threshold will be based on a store’s lifetime global sales rather than its sales during each calendar year.
Shopify is changing how the free discount on Shopify Tax fees works. The discount will no longer reset each calendar year; instead, it will depend on a store’s total global sales.
How the free discount threshold is measured
Shopify Tax fees are fully discounted until a store reaches 100,000 in lifetime global sales. The threshold is measured in the store’s pricing currency, based on its location: CAD in Canada, EUR in the European Union, GBP in the United Kingdom, and USD everywhere else.
All sales count toward the threshold, regardless of where customers are located.
What changes on January 1, 2027
Stores below the lifetime sales threshold will continue to receive a full discount on Shopify Tax fees until they reach it. Stores at or above the threshold will not receive a new annual free discount on January 1, 2027.
Fees will apply to eligible orders where Shopify Tax calculates tax. Per-order fee rates and existing annual billing caps will remain unchanged.
Tax settings and store actions
Shopify Tax will continue to calculate tax automatically at checkout and keep up with rate changes. No action is required for the change, and you can review your tax settings in Shopify admin at any time.
From January 1, 2027, lifetime global sales—not annual sales—will determine the Shopify Tax free discount.