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medusa-store/docs/content/modules/taxes/backend/tax-calculation-strategy.md
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---
description: 'Learn how to create a tax provider. You can create a tax provider in a Medusa backend or a plugin.'
addHowToData: true
---
# How to Override a Tax Calculation Strategy
In this document, youll learn how to override a tax calculation strategy.
## Overview
A tax calculation strategy is used to calculate taxes when calculating totals. The Medusa backend provides a tax calculation strategy that handles calculating the taxes accounting for defined tax rates, and settings such as whether tax-inclusive pricing is enabled.
You can override the tax calculation strategy to implement different calculation logic or to integrate a third-party service that handles the tax calculation. You can override it either in a Medusa backend setup or in a plugin.
---
## Step 1: Create Strategy Class
A tax calculation strategy should be defined in a TypeScript or JavaScript file created under the `src/strategies` directory. The class must also implement the `ITaxCalculationStrategy` interface imported from the `@medusajs/medusa` package.
For example, you can create the file `src/strategies/tax-calculation.ts` with the following content:
```ts title=src/strategies/tax-calculation.ts
import {
ITaxCalculationStrategy,
LineItem,
LineItemTaxLine,
ShippingMethodTaxLine,
TaxCalculationContext,
} from "@medusajs/medusa"
class TaxCalculationStrategy
implements ITaxCalculationStrategy {
async calculate(
items: LineItem[],
taxLines: (ShippingMethodTaxLine | LineItemTaxLine)[],
calculationContext: TaxCalculationContext
): Promise<number> {
throw new Error("Method not implemented.")
}
}
export default TaxCalculationStrategy
```
Note that you add a basic implementation of the `calculate` method because its required by the `ITaxCalculationStrategy` interface. Youll learn about the method later in the guide.
### Using a Constructor
You can use a constructor to access services and resources registered in the dependency container using dependency injection. For example:
```ts title=src/strategies/tax-calculation.ts
// ...
import {
LineItemService,
} from "@medusajs/medusa"
type InjectedDependencies = {
lineItemService: LineItemService
}
class TaxCalculationStrategy
implements ITaxCalculationStrategy {
protected readonly lineItemService_: LineItemService
constructor({ lineItemService }: InjectedDependencies) {
this.lineItemService_ = lineItemService
}
// ...
}
```
---
## Step 2: Implement the calculate Method
A tax calculation strategy is only required to implement the `calculate` method. This method is used whenever the totals are calculated.
:::tip
If automatic tax calculation is disabled, then the tax calculation strategy will only be used when taxes are calculated manually as explain [this guide](../storefront/manual-calculation.md).
:::
The `calculate` method expects three parameters:
- `items`: the first parameter is an array of [line item](../../../references/entities/classes/LineItem.md) objects.
- `taxLines`: the second parameter is an array of either [shipping method tax line](../../../references/entities/classes/ShippingMethodTaxLine.md) or [line item tax line](../../../references/entities/classes/LineItemTaxLine.md) objects.
- `calculationContext`: an object holding the context of the tax calculation. The object has the following properties:
- `shipping_address`: an optional address object used for shipping.
- `customer`: an optional customer object.
- `region`: an optional region object.
- `is_return`: a boolean value that determines whether the taxes are being calculated for a return flow.
- `shipping_methods`: an array of shipping methods being used in the current context.
- `allocation_map`: an object that indicates the gift cards and discounts applied on line items. Each object key or property is an ID of a line item, and the value is an object having the following properties:
- `gift_card`: an optional object indicating the gift card applied on the line item.
- `discount`: an optional object indicating the discount applied on the line item.
The method returns a number, being the tax amount for the line items, tax lines, and context provided.
---
## Step 3: Run Build Command
In the directory of the Medusa backend, run the `build` command to transpile the files in the `src` directory into the `dist` directory:
```bash npm2yarn
npm run build
```
---
## Test it Out
Run your backend to test it out:
```bash npm2yarn
npx @medusajs/medusa-cli develop
```
To test it out, you can simulate a checkout flow and check the calculated taxes to see if it matches the logic you implemented in the `calculate` method.
:::tip
As mentioned earlier, if automatic calculation of taxes is disabled in the region, you have to manually trigger tax calculation as explained in [this guide](../storefront/manual-calculation.md).
:::