Navigate to Settings -> Tax Settings.
Click on the Create New button.
Tax Name
Enter the name of the Tax.
Tax Rate
Enter the tax percentage (%).
Enabled
Check to enable or disable to tax.
Tax Type
Independently - Tax value is calculated independently based on cart total and delivery.
With Tax - Tax rate is added together with a tax before calculation.
After Tax - Tax rate is added after a tax rate is applied.
Apply Tax To Shipping Location
If the tax rate applies to a specific shipping location, you can select here.
Select the product you want to apply this tax to if not all products are affected
Important Note:
If you apply tax to a product list, the tax will be calculated at the line item. If you intend to calculate taxes to the whole cart, make sure its deselected.