Local delivery is a simple shipping method for delivering orders locally. The fee can be specified based on a percentage of the cart total, a flat fee, or it can be free.
You can enable & configure Local delivery from WP Dashboard -> WooCommerce -> Settings -> Shipping -> Local Delivery
The taxes for Local Delivery are based on the store location settings. If your tax rules are based on postcodes / zipcodes then you will need to use a function to make sure the store postcode / zipcode is included.