Taxes overview

Most states levy sales taxes on meals that are served by a restaurant. Other levels of government, such as counties and cities, may also impose taxes on food and beverages served by restaurants in their regions.

The Toast platform lets you configure various types of tax rate settings for your restaurant. These tax rates ensure that you are collecting the correct amount of tax from your guests, based on the region where your restaurant is located.

Important

Before creating tax rates for your restaurant, consult with a tax expert for information on how your state calculates sales tax. Toast does not provide information about or guidance for complying with tax regulations.

The Toast platform supports the following tax rate types:

  • Percent - uses a fixed percentage (such as 6.25%) with one of four penny-rounding options. Optionally, you can also create a takeout tax rate in addition to the basic percent tax rate.

  • Fixed - uses a fixed monetary amount (such as $1.25).

  • The following sections describe the Toast tax rates that you can configure and how to apply different tax rates on modifier options.Tax Table - uses a Toast tax table based on a state's tax table.

  • Disabled - disables a tax rate.

After you create your restaurant's tax rates, you can configure how they apply to menu items and modifier options.

Note

If you are configuring tax rates for enterprise restaurant chains, you should also read Tax rates for enterprises.