How tax rate is determined for products marked taxable

When you mark a product taxable on a Price List and choose the Automatic tax rate option, the tax rate that is applied is determined automatically based on your customer's shipping address. For pickup orders, the tax rate is based on the address you have specified in Settings -> Business Info.

If you have applied a Static tax rate in the Sales tax tab of your Payment page, that tax rate is applied instead of the automatic rate to all products marked taxable, regardless of the delivery/pickup address.