← Matt Martin

I added sales tax without losing conversion

0 · conversion lost

The company was eating sales tax in every state. I shipped collection at checkout and conversion did not move. Raising a price for free is the hard part. That is the win.

The problem

Outschool was absorbing sales tax it should have collected. Every US state treats online education differently, so there was no single rule to follow.

Adding a tax line at checkout is a price increase. Price increases usually cost you conversion.

What I did

Owned the product implementation. Worked through state-level tax law with legal and finance. Designed a checkout that introduced tax to users without spooking them, and shipped the backend to collect and remit across states.

What moved

Conversion held flat despite a real price increase to users. Money back to the company, regulatory risk down, and proof that careful UX can absorb a price change that normally hurts.

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