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Takeout tax rates

The tax code in some states specify that different tax rates must be charged for takeout food items versus dine-in food items. For example, meals consumed in the restaurant may be taxed at a higher rate than meals taken out and consumed at home.

Using the same configuration page that you use to create a percent tax rate, you can configure a second percent rate for takeout orders. The takeout tax rate applies only to menu items in orders using a dining option with the Take Out behavior. Menu items that are specifically assigned on the Toast POS device to a dining option with the Take Out behavior will also be charged with the takeout tax rate. The takeout tax rate is optional and does not affect the basic percent tax rate.

Note

You create a basic percent tax rate in the Basic section of the tax rate configuration page and a takeout tax rate in the Take Out Tax section of the same page. The Take Out Tax section is dynamically added to the page when you select Percent as the Type for the tax rate. You must configure a basic percent tax rate (even if its rate is 0.0) before you can save your takeout tax rate configuration.

Keep the following in mind when you create a takeout tax rate:

  • The takeout tax rate applies to menu items using a dining option with the Take Out behavior. It does not apply to menu items using a dining option with a behavior of Dine In, Delivery, Curbside, or None.

  • Your restaurant must have at least one dining option with the Take Out behavior configured on the Kitchen > Dining options > Dining options page, as in this example:

    Dining Options page with a Take Out behavior example.

    If your restaurant does not have a dining option with the Take Out behavior, you cannot configure a takeout tax rate because the Take Out Tax section of the percent tax rate configuration page will be unavailable.

  • Menus that can be used for takeout orders must have the Dining Option Tax setting configured as No Effect on the Menus > Menu management > Advanced properties page, as in this example:

    Dining Options Tax set to No Effect.

When you take an order that must be taxed at the takeout tax rate, make sure you select a takeout dining option for the order, as in this example:

Dining Option dialog on the Toast POS device.