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Percent rates

A percent tax rate calculates the sales tax on a menu item based on a fixed percentage of the item price. You configure a percent tax rate for your restaurant if your region uses a percent-based sales tax rate.

For example, suppose a state has a sales tax of 5% on meals sold by restaurants. If your restaurant were in that state, you could create a percent tax rate of 5% that is imposed on menu items. With that tax rate, a meal with a subtotal of $108.80 would have a sales tax of $5.44, for a total of $114.24. Keep in mind that additional taxes (such as a local tax) could also be applied to the check.

You can configure multiple percent tax rates for your restaurant. For example, you could configure a tax rate of 6% for food items and a tax rate of 9% for alcoholic beverages. You would then configure the food items on a menu to use the 6% tax rate, and the beverage items to use the 9% tax rate.

In addition to the basic (primary) percent tax rate, you can optionally configure a secondary takeout tax rate for takeout orders.