Thanks for the quick reply. My settings are as follows.
Under "tax settings", I have checked these boxes
- Product prices are tax exclusive
- Replace tax percentage with product specific tax rate
- Apply tax when Billing and Shipping Country is the same as Tax Rate
- Apply tax to Shipping Address
Under "Tax Rate" I have selected USA, California, 7.5%. No check mark for "tax shipping"
For Payments I am using PayPal Standard 2.0
- "Account Type" = Live Account
- "IPN" = Yes
- "Send shipping details" = No
- "Address Override" = No
The tax amount shows up on the "check out" screen. However, once it sends to me to paypal to pay, the tax is missing.