I know, it's not explained very well in the documentation. But turns out to be really simple once you understand the concepts. You create a tax category. The one that comes installed is called "default." Then you create tax rate. I would also call it "default" to keep it simple. Then you add the default tax rate to the default tax category. You make sure that any product you want to tax has its configuration settings set to "default tax category." Now the tax will be applied. You will be able to see it in the price settings of the product after you save.
Hikashop also has the ability add tax zones with custom-tailored rates for customers who live with the zone. So, in my default tax category, I add some zones. Say, for example, Wisconsin. Now I set the rate for the Wisconsin zone as 3%. Anybody from Wisconsin who makes a purchase will be charged 3% tax. The problem there, though, is that Wisconsin people will be double taxed. They will pay the default tax rate AND another 3% for Wisconsin. This to me is a bug. When you establish a zone, it should override the default tax rate. But I have found that it doesn't. The zone rate is charged additionally. So, I appreciate the added functionality. But it's quite difficult to administer.
I hope the Hika Support will read this and correct me if wrong.
Also, I hope this has been helpful.
-Jim G.