How do we store cascading taxes in a database? or database structure for storing taxes?

You could add another table that has a many-to-one relationship with TaxCategory that uses a ranking column to define what order the taxes are applied in.

You could add another table that has a many-to-one relationship with TaxCategory that uses a ranking column to define what order the taxes are applied in. TaxCategoryRates taxCategoryId taxRate taxRank taxDescription ------------- ------- ------- -------------- 1 10 1 Service Charge 1 4 2 VAT 2 3 NULL Local Sales Tax 2 4.5 NULL State Sales Tax Your logic then applies the taxes in order of taxRank. If you have other tax categories where order doesn't matter (as in taxCategoryId 2), you can just leave the rank NULL and have your logic sum the tax rates and apply them.

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