Local Pickup Tax Calculation Issue in WooCommerce When Using ShipperHQ
Overview
Some merchants using ShipperHQ for Local Pickup have reported that sales tax is calculated based on the customer’s shipping address, even when the customer selects a Local Pickup option. In these cases, the tax should instead be based on the pickup location address.
This behavior is due to how WooCommerce Platform handles address data at checkout and is not currently overridden by ShipperHQ.
Root Cause
ShipperHQ does not update or replace the customer’s shipping address with the Local Pickup location address after the customer selects a Pickup option. Because of this, WooCommerce Platform or a connected tax system (such as Avalara) continues to use the customer’s shipping address when calculating sales tax.
ShipperHQ does send the correct pickup location address back to WooCommerce, but the platform does not automatically use this address for tax calculations.
What ShipperHQ Provides
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ShipperHQ correctly returns the Pickup Location address in the rate response.
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The platform (WooCommerce) receives this address.
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ShipperHQ does not modify checkout addresses or tax logic, as this is controlled fully by the eCommerce platform and tax provider.
Recommended Next Steps
Because tax calculation behavior is determined by WooCommerce or connected tax system/program, the recommended solution is to update the platform's tax logic to use the pickup location address when Local Pickup is selected.
Contact the following providers for guidance:
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WooCommerce Support: To determine whether WooCommerce can swap or override the shipping address for tax purposes based on the selected pickup method.
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Tax System/Program Support: To confirm whether Avalara can use the pickup location address as the taxable address if WooCommerce passes it through.
These changes fall outside of ShipperHQ’s configuration scope.
Summary
ShipperHQ provides the pickup location address but does not replace the customer’s shipping address at checkout, which affects tax calculation in WooCommerce when using Avalara. To correct this, WooCommerce or Avalara must be configured to use the pickup location as the taxable address for Local Pickup orders.