Custom tax structure for Paid Memberships Pro where level 1 has no tax and all other levels have 7.25% tax if billing state is CA.

my_pmpro_custom_tax_example.php

<?php
/*
	Custom Tax Example.
	- Requires PMPro 1.3.13 or higher.
	- Leave the tax fields blank in the payment settings.
	- Level 1 has no tax.
	- Other levels have 7.25% tax for CA customers only.
	- We update the price description to include the tax amount.
*/
function my_pmpro_tax($tax, $values, $order)
{	
	//only applicable for levels > 1
	if($order->membership_id > 1)
	{
		if(trim(strtoupper($order->billing->state)) == "CA")
		{
			$tax = round((float)$values['price'] * 0.075, 2);		
		}
	}

	return $tax;
}
add_filter("pmpro_tax", "my_pmpro_tax", 10, 3);

function my_pmpro_level_cost_text($cost, $level)
{
	//only applicable for levels > 1
	if($level->id > 1)
	{
		$cost .= " Customers in CA will be charged 7.25% tax.";
	}

	return $cost;
}
add_filter("pmpro_level_cost_text", "my_pmpro_level_cost_text", 10, 2);