How to set up tiered tax rates based on product sale price?

How do set up the taxes based on the sale price, for example, the apparels Sale price 1049, and if it’s more than 1049 then its tax should be 12% rather than 5% on it., which will be a great help

See let me explain to you if you are selling a t-shirt and its price is less the 1000 rs then 5% of the tax is deducted but if the price goes above 1000 RS then 12% of the tax is deducted.
I can able to add the tax for 5% but for 12% I can not figure out if the customer buys a product whose price goes beyond 1000 rs how will I show including tax of 12 % and collect 12% for it?

Unfortunately, Shopify’s native tax system still cannot do this automatically. Shopify’s tax rates are based on:

  • Product category/type

  • Customer location

  • Fixed tax overrides per product collection

Shopify cannot automatically apply different tax rates to the same product category based on the individual product’s price.

Possible solutions to test out (but check with a tax professional)

1. Manual collection-based approach (most practical):

Since your tax threshold is based on product price, you can manually organize products:

  • Create a collection called “Apparel Under 1000” for products priced below Rs.1000

  • Create a collection called “Apparel 1000 and Above” for products Rs.1000+

  • Set up tax overrides for each collection with the appropriate rate (5% vs 12%)

Limitations: You’d need to manually move products between collections if prices change, and maintain this organization ongoing.

2. Use product categories with tax overrides:

  • Assign different product categories to items based on their price point

  • Create tax overrides for each category

  • Similar manual maintenance required