Tax rules are combination of Product Tax Classes, Customer Tax Classes and Tax Rates. You should have to apply tax rules in the settings. Below steps
Below steps for add and manage tax rules in your Magento store.
• Login to your Magento Admin Panel.
• Open the Sales menu and click on Tax option. After click on that you will see another sub menu. From this menu choose the Manage Tax Rules option.
- Click on Add New Tax Rule button for adding a new tax rule.
There are several options in tax rule.
- Name field specifies name for tax rule
- Customer Tax Class field displays the list of customer tax classes that you have created
- Product Tax Class field displays the list of product tax classes that you have created
- Tax Rate field selects the tax rate which you want to apply to this rule
- Priority field specifies when the tax should be applied to other tax rules
- Sort Order field displays the order in which tax rules should be displayed
After completing the settings, click on the Save Rule button.