> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer Tax %: Tax Share of First-Time Buyer Revenue

> Measure tax as a percentage of new customer revenue. Track tax burden on first-time buyers and compare across customer segments and regions.

<Tip>
  Tax collected as a percentage of total revenue from first-time buyers.
</Tip>

## Formula

<Info>
  **New Customer Tax %** = ( [**New Customer Tax**](/reference/metrics/orders/adjustments/new-customer-tax) ÷ [**New Customer Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                                         | Definition                                                      |
| ---------------------------------------------------------------------------------------------- | --------------------------------------------------------------- |
| [**New Customer Tax**](/reference/metrics/orders/adjustments/new-customer-tax)                 | Total tax collected from first-time buyer orders                |
| [**New Customer Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue) | Total revenue from first-time buyers including shipping and tax |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your store had a **6.8% New Customer Tax %** this quarter:

| Metric           | Value    | Context                |
| ---------------- | -------- | ---------------------- |
| NC Tax Collected | \$4,760  | Tax from new customers |
| NC Total Revenue | \$70,000 | Revenue including tax  |
| NC Tax %         | 6.8%     | Effective tax rate     |

***

## How It Works

This metric divides total tax collected from new customers by their total revenue (which includes tax), expressed as a percentage. It represents the effective tax burden on first-time buyer transactions and varies based on customer location and product taxability.

***

## When to Use

| Scenario                       | Action                                                |
| ------------------------------ | ----------------------------------------------------- |
| Comparing customer segments    | Benchmark against Returning Customer Tax %            |
| Analyzing regional performance | Identify geographic tax rate differences              |
| Financial forecasting          | Project tax obligations from new customer acquisition |
| Pricing strategy               | Understand tax impact on customer acquisition costs   |

***

## Related Metrics

| Metric                                                                                     | Relationship                                 |
| ------------------------------------------------------------------------------------------ | -------------------------------------------- |
| [New Customer Tax](/reference/metrics/orders/adjustments/new-customer-tax)                 | Numerator — tax collected from new customers |
| [New Customer Total Revenue](/reference/metrics/orders/revenue/new-customer-total-revenue) | Denominator in this formula                  |
| [Tax %](/reference/metrics/orders/adjustments/tax-percent)                                 | Same calculation for all customers           |
| [RC Tax %](/reference/metrics/orders/adjustments/returning-customer-tax-percent)           | Compare new vs. returning customer tax rates |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)