Taxes are added during checkout rather than included in displayed prices.
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Tax-exclusive pricing means that the listed product price does not include tax. Taxes are calculated separately and added during checkout based on the applicable tax rules.
For example, if a product is listed at $100 and the applicable tax is 10%, the customer would typically see:
Product price: $100
Tax: $10
Total at checkout: $110
Tax-exclusive pricing is common in regions where sales tax is usually added at the point of purchase, such as many parts of the United States and Canada. In Shopify, merchants can choose whether prices are tax-exclusive or tax-inclusive depending on their business needs and local regulations.