Tax rate is simply the percentage of your website income that a government takes in taxes. You can collect taxes from the users on the sales made from your website. To view all taxes, go to Financial and click Tax Rates.
Admin can set sales tax rates manually in a few quick steps. To add or modify tax rates, go to Financial->Tax Rates in your Admin Area.
Now, on the frontend, the final checkout cost estimator shows the appropriate tax for the country and state you set up.