The Simple Extended page for taxes can be used to set tax rates for Country, State, County, City, and Zip Code ranges. Each level can have a different tax rate for each jurisdiction and are added together when calculating the tax for an item on an order.
This has the same Tax category and State as Simple Taxes, but there are more granular fields to use.
You can use Simple tax rates for some items and Simple Extended for others. To control which method is used, please see Tax Methods.
To get to the Simple Extended Taxes, go to Administration > Settings > Taxes > Taxes - Simple Extended.
There is a "New" link at the top right of the grid and an "Edit" link in the far right column for each row.
Please consult with your tax expert or consultant on what the tax rates should be and which tax method would be better to use for your business.