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Create and Manage Your Sales Tax Settings

With Square, you can create and manage taxes from the Square app and online Dashboard. Square’s fees are taken out of the total amount of each transaction, including tax and tip.

To track your taxable and non-taxable sales, visit your online Square Dashboard.

Create Item Sales Tax Online

  1. Visit Account & Settings in your online Square Dashboard > Business information > Sales tax.

  2. Click Create tax.

  3. Enter the tax name, rate and locations where the tax applies.

  4. Apply the tax to all items in your library or select specific items. You can also apply the tax to Custom Amounts and include a Service Charge.

    Note: You can choose to Add Tax to Item Price, which adds the tax as a separate line item to the price or Include tax in item price, which shows one amount – the combined sales tax and item price.

  5. Click Save.

You can also view your taxes from the item level:

  1. Visit Items in your online Square Dashboard.

  2. Click on an item to bring up the item details page. If taxes have been applied to an item, they will be listed under Sales Tax.

  3. If there is no sales tax applied, click Account & Settings > Business > Sales Taxes to get started.

Create Item Sales Tax from the App

With the Square app, you can create multiple tax rates and customize how tax is applied to your items. 

  1. From the navigation bar at the bottom of your screen, tap More.

  2. Tap Settings > Checkout > Taxes

  3. On a mobile device, tap the + icon in the top-right corner. On a tablet, tap Add a New Tax

  4. Enter the tax information and toggle on Enabled to automatically apply this tax at checkout. 

  5. Tap Applicable Items to choose which items this tax will automatically apply to. Toggle on Custom Amounts to apply this tax to amounts entered at the time of a sale.

  6. Tap the back arrow > Item Pricing. Select if this tax will be included in item prices or added to a price at the time of sale.

  7. Make sure you save your updates.

Edit Taxes at the Time of Sale

  1. From the Square app, tap Review Sale and tap an item.

  2. Under Taxes, toggle applicable tax rates on or off.

Note: From the Sale screen, you can also tap Tax to view all tax rates applied to the current sale. Tap the red minus icon to remove a tax rate from applicable items within the sale.

You can enable your employees to edit taxes at the time of a sale through your employee permissions.

Remove Tax

There are two ways you can turn off a tax so it will no longer apply to any purchases. You can temporarily disable a tax and re-enable it later, or you can permanently delete a tax. Both can be done in the Point of Sale app and online Dashboard. 

From the Point of Sale app:

  1. From the navigation bar at the bottom of your screen, tap More.

  2. Tap Settings > Checkout > Taxes and select the tax you’d like to remove.

  3. Toggle off Enabled to disable the tax or tap Delete Tax From This Location to permanently delete it.

  4. Save your changes.

From the Square Dashboard:

  1. Visit Accounts & Settings in your online Square Dashboard > Business > Sales Taxes.

  2. Select the tax you would like to remove.

  3. Click the Actions button and then select Disable tax or Delete.

  4. Confirm your choice to apply the changes.

Create Tax Exemptions

You can create tax exemption rules on your online Square Dashboard to apply them to sales across your devices. These rules can exempt specific items or item categories from taxes. You can also create a tax exemption rule for sale totals that are above or below a custom price point. Learn how to create and manage tax exemption rules with our Tax Exemption Guide.

Manage Taxes with the Catalogue Import Tool

Follow the steps outlined above in the Create Item Sales Tax Online section to create the tax rate. Once you’ve completed this step, follow the below steps to apply the tax to your catalogue via the catalogue import.

  1. Once the tax rate is created, click Items > Actions > Export Library in your online Square Dashboard.

  2. Once exported, tax columns will appear at the end of the spreadsheet. From here, enter a Y or an N in each item row to apply, or not apply the tax rate to the selected item in the catalogue.

  3. For large catalogues, items can be sorted by category, or a formula can be written to facilitate the bulk application of tax rates.

  4. Once tax rate(s) has been assigned to items within the spreadsheet, go back to Items > Actions > Import Catalogue > Modify Item Library to upload any changes.

Note: When editing any existing catalogue items from the spreadsheet, do not edit or remove the value in the Token column. Upon reimporting, the token is used to identify the existing item in the catalogue.

Learn more about: Point of Sale

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