WooCommerce tax settings are one of the most important areas of WooCommerce settings since incorrectly setting these up can result in wrong sales tax, or worse, legal issues with the IRS. Since this is such an important step, we are once again going to refer you to WooTheme’s documentation. Since they create the plugin, their guides will always be up to date with new features and changes.
https://docs.woothemes.com/document/setting-up-taxes-in-woocommerce/
Tax Example: https://support.woothemes.com/hc/en-us/articles/203233725-WooCommerce-101-Part-5-Tax-Example
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