To add tax rates:
2.Click on Settings and then Tax
If you haven't yet setup your store, you will need to add at least one shipping rate. You can only setup a tax rate for a place that you ship to. The tax page will prompt you to add a shipping rate before you can add any tax rates.
Add shipping rate
Toggle Enable tax?
Toggle Enable tax for your desired countries
Add the tax rate
Tax is calculated during checkout and is applied to the combined value of all items in the basket.