> ## Documentation Index
> Fetch the complete documentation index at: https://storekit.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# How Taxes Work

> The two ways storekit can price tax, where your store's tax settings live, and what customers see at checkout.

Every store has a **Taxes** page. It sets whether your menu prices include tax, which taxes you charge, and what each one applies to. storekit calculates tax on every order from these settings.

## Find Your Tax Settings

Go to **Stores** → your store → **Settings** → **Taxes**. It's in the **Money** group, under **Payments** and **Gratuity**.

<Frame>
  <img src="https://mintcdn.com/storekit/o8VvffHEoSvj4_zm/images/taxes/store-settings-taxes.png?fit=max&auto=format&n=o8VvffHEoSvj4_zm&q=85&s=19f2a85a36c9ab2795ce6603eb5a6e9d" alt="Store settings list with the Taxes row highlighted in the Money group" width="1000" height="640" data-path="images/taxes/store-settings-taxes.png" />
</Frame>

## Two Ways to Price Tax

The **Prices** setting at the top of the page decides which one your store uses.

| **Prices** setting | What the menu shows | What the customer pays | Typical for |
| - | - | - | - |
| **Menu prices include tax** | The price with tax already in it | The menu price. The tax is the part of it storekit records on the order. | UK, EU, Australia and most countries with VAT or GST |
| **Tax is added at checkout** | The price before tax | The menu price plus tax, shown as its own line at checkout | United States (sales tax) |

These are the only two options.

## What's on the Taxes Page

| Section | What it does |
| - | - |
| **Prices** | Whether menu prices include tax or tax is added at checkout. |
| **Taxes** | Each tax has a **Name** and one or more rates. Enter each rate per service (for example **Pickup** and **Delivery**). Only the services your store offers get a column. Leave a service blank where the rate isn't charged. **Customer pays** shows the total rate for each service. |
| **Applied to** | Which tax applies to **Items without their own tax**, the **Delivery fee**, the **Service charge** and the **Tip**. Each can be **Not taxed**. |
| **VAT number** / **Sales tax permit number** / **Tax number** | Your tax registration, printed on receipts and invoices with the store address. The label depends on your store's country. |

Nothing changes until you click **Save** at the bottom of the page.

## Give One Item a Different Tax

Items use the tax set in **Items without their own tax**. To charge a different tax on one item, such as a lower rate on bakery goods sold to take home:

1. Add that tax on the **Taxes** page and click **Save**.
2. Open the menu, click the item, and choose the tax in its **Tax** field.

<Frame>
  <img src="https://mintcdn.com/storekit/o8VvffHEoSvj4_zm/images/taxes/item-tax.png?fit=max&auto=format&n=o8VvffHEoSvj4_zm&q=85&s=9cdf6a339177e6011aed1d71aa379593" alt="The Tax field in the Edit product panel" width="656" height="162" data-path="images/taxes/item-tax.png" />
</Frame>

Modifiers use **Same as the item** unless you pick a tax for them.

## Next Steps

<CardGroup cols={2}>
  <Card title="Tax defaults for new stores" icon="wand-magic-sparkles" href="/docs/guides/taxes/new-store-defaults">
    What a store is set up with when you create it, and what to check.
  </Card>

  <Card title="Set up tax-exclusive pricing" icon="flag-usa" href="/docs/guides/taxes/tax-exclusive-pricing">
    Add tax at checkout, as US sales tax works.
  </Card>

  <Card title="Taxes and your POS" icon="cash-register" href="/docs/guides/taxes/pos">
    How taxes work when your store is connected to a point of sale.
  </Card>
</CardGroup>

<Warning>
  storekit calculates tax from the settings you enter, but it doesn't give tax advice. Check your rates and registration with your accountant or your local tax authority.
</Warning>


## Related topics

- [Taxes and Your POS](/docs/guides/taxes/pos.md)
- [Lightspeed Pay at Table](/docs/guides/integrations/pos/lightspeed/pay-at-table.md)
- [PointOne Pay at Table](/docs/guides/integrations/pos/pointone/pay-at-table.md)
- [How Company Matching Works](/docs/catering/marketing/company-matching.md)
- [Sales and accounting reports in storekit](/docs/guides/reports/overview.md)


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