With Taxes 2.0, you can assign multiple tax rates to a location and then control exactly which taxes apply to each individual service or product. This is especially useful for businesses that offer services with category-specific taxes — like dry cleaning or tanning — on top of a standard sales tax.
Note: Before assigning tax rates, make sure the tax rates you need have already been created in Admin → Account → Taxes. See How to set up a new tax rate if you haven't done this yet.
Step 1: Assign tax rates to a location
In the Business Manager, go to Admin → Locations and select the location you want to configure.
Scroll to the Tax Rate section.
You'll see all tax rates currently assigned to this location. One will be marked as the default — this tax is automatically applied whenever a service or product at this location is marked as taxable.
To add additional tax rates, select them from the available list.
Click Save.
Important: Adding a tax rate to a location makes it available for assignment — it doesn't automatically apply it to every order. You'll still choose which taxes apply to each specific service or product in the next step.
Step 2: Assign taxes to a service
Go to Pricing for the relevant service.
Make sure Taxable is checked for the service.
Click Customize Taxes.
You'll see all tax rates available at that location. Select the ones that apply to this service.
The total tax percentage will update as you add or remove rates (e.g., 8.2% sales tax + 5% excise tax = 13.2% total).
Click Save.
Example: If you offer tanning bed services, you might apply both your standard state sales tax and a 10% federal excise tax only to that service — leaving your standard laundry services at the default rate.
To remove a tax from a service, go back to Customize Taxes and deselect the rate, or uncheck the tax directly from the list.
Step 3: Assign taxes to a product
Navigate to the product in your product catalog.
Check the Taxable option.
Click Customize Taxes to select which tax rates apply to this product.
Save your changes.
Tip: The aggregate tax percentage is displayed on each service and product so you can quickly see which ones have multiple taxes applied (e.g., "Taxable at 14.2%").
How taxes appear in reporting
The Sales Tax Liability report now breaks down collected taxes by individual tax rate, so you can see exactly how much is owed per rate at each location. This is especially helpful when different taxes go to different government entities. All other order-level reporting continues to show the aggregate tax amount.
FAQs
What does the "default" tax rate mean? The default tax rate is automatically applied whenever a service or product is marked as taxable — no extra configuration needed. This keeps things simple for businesses with a single standard sales tax. Additional tax rates can be layered on top using Customize Taxes.
Can I assign the same tax rate to multiple locations? Yes. Tax rates are created once at the account level and can be assigned to as many locations as needed.
What happens if I add a new tax rate to a location — will it apply to existing services? No. Adding a tax rate to a location only makes it available for future assignment. Existing services keep their current tax configuration until you update them manually.
Can I remove a tax from a service after adding it? Yes. Go to Customize Taxes on the service or product and deselect the tax rate you want to remove.
What if a service should have no tax at all? Uncheck Taxable on the service or product. No tax will be calculated for that item.