Regional Zones allow you to specify areas or “zones” where you can set specific tax rates. Each zone can be set to have specific states or countries that you can use
Managing Regional Zones
To add and update regional zones, click on Localization > Taxes and Zones > Regional Zones. On the Manage Zones page, you can view the zones you have set, as well as Create Zone if you want to click on it and create a new one.
Adding a Zone
On the Create Zone page, you can name your zone and set the Zone Regions for this zone. You can specify as many countries, and regions / states. For example, you can select Canada as the country, and for the region, either specify All Regions or specific ones, like Ontario.
Once you have created all of your regional zones, you can use those zones when creating tax rates.