Tax Zones

You also need to set up different zones based on the various location tax (ie different states, various countries). You can lump together multiple areas that have the same rates. To create a new tax zone go to Buy/Sell > Zones. 
From here we can create a new zone and fill out the details. You can select multiple states or countries, see below to see where you can input multiple locations. Once complete hit "create zone" and the zone has been created. You can then move on to the tax rates section.