Worth knowingShopify · Changelog

Shopify Tax's free allowance stops resetting each year from 1 January

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Do I need to act?
No, but worth a look
Deadline
1 Jan 2027 · 50 days left
Who it’s for
founders, ops

What they said

Read the original ↗
“Shopify Tax fees are fully discounted until a store reaches 100,000 in lifetime global sales.”
Source: Shopify

In plain English

Shopify Tax is free until your store passes 100,000 in sales (£100,000 for UK stores). Until now that allowance reset every calendar year. From 1 January 2027 it's based on your store's lifetime sales instead, so once you've passed it, it doesn't come back.

Does this affect you?

This affects
  • Stores using Shopify Tax that have already passed 100,000 in lifetime sales in their pricing currency
This doesn’t affect
  • Stores not using Shopify Tax
  • Stores still under the threshold, which keep the full discount until they reach it

Why it matters

If your store has already passed £100,000 in total sales, you won't get a fresh free allowance on 1 January. Shopify Tax fees will apply to eligible orders where Shopify Tax works out the tax.

Shopify says the per-order fee rates and the existing annual billing caps aren't changing. Stores still under the threshold keep the full discount until they reach it.

What to do

  1. Check whether you use Shopify TaxYou

    Look at your tax settings in the Shopify admin. If Shopify Tax isn't calculating tax for you, this change doesn't affect you.

  2. Allow for the fees in your 2027 budgetYou or your finance team

    If your store is past £100,000 in lifetime sales, budget for Shopify Tax fees from January rather than expecting another free year. Shopify's tax pricing help page has the rates.

Questions

When does the Shopify Tax change start?

1 January 2027. From then the free discount is based on lifetime global sales instead of resetting each calendar year.

What is the Shopify Tax threshold for UK stores?

100,000 in lifetime global sales, measured in your store's pricing currency, which is GBP for UK stores. All sales count, wherever your customers are.

Are Shopify Tax fee rates going up?

No. Shopify says per-order fee rates and the existing annual billing caps are unchanged. Only how the free allowance is counted changes.

Checked before publishing

Found by our AI agent and checked by Peter Screeton, Founder of Create8. He confirmed the original source is genuine and that this summary matches what it said when published.

General information only, not professional advice. Platforms change things often, so always read the original source before you act. How we check stories

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