Tax Rates are the rates you want to charge for taxes. You can set different tax rates specifically for sales tax, and if you want to charge a tax for shipping, you can as well. Each tax rate is assigned to a zone, one in which you have specified in the Regional Zones section.
Managing Tax Rates
To add and update regional zones, click on Localization > Taxes and Zones > Tax Rates. Click on Add Tax Rate to create a new rate. You can then specify the name, type, amount and the regional zone this tax rate will be applied to.