Shopify Tax free discount will no longer reset annually

Shopify is changing how the Shopify Tax free discount works. Starting January 1, 2027, it will be based on a store's lifetime global sales instead of resetting every calendar year.

Shopify Tax fees stay fully discounted until a store reaches 100,000 in lifetime sales. The threshold is measured in your store's pricing currency, which depends on location: CAD in Canada, EUR in the European Union, GBP in the United Kingdom, and USD everywhere else. All sales count, wherever your customers are.

If you're below the threshold, nothing changes for now. If you're at or above it, your store won't get a new annual free discount on January 1, 2027, and Shopify Tax fees will apply to eligible orders where Shopify Tax calculates tax. Per-order fee rates and any existing annual billing caps stay the same.

Shopify says no action is required. You can check your tax settings in Shopify admin at any time.