Add / Edit Taxes
Taxes->[Add new tax]

Overview
Here you can add/edit a tax.

Elements
Tax name
The name of the tax as it will appear in the Store Section.

Select the country
The country where the specific tax is applicable.
You can make multiple selections by clicking and dragging with the mouse, or clicking many countries while holding down CTRL key.

Select the region
The region where the specific tax is applicable. You can add/edit/remove regions from Add new region/state page.
You can make multiple selections by clicking and dragging with the mouse, or clicking many countries while holding down CTRL key.

Select the category
The product category where the specific tax is applicable. You can add/edit/remove categories from Add/Edit Categories page.
You can make multiple selections by clicking and dragging with the mouse, or clicking many countries while holding down CTRL key.

Calculates taxes for the total price
If this option is selected the tax will be calculated as % from the total product price.

Calculates taxes for the total price + shipping
If this option is selected the tax will be calculated as % from the total product + shipping price.

Tax value
The tax % from the total price with or without shipping (depending on the above selection)


Links
From here you can:

Update tax [Update] return to the same page