thread Re: Make tax inclusive on a certain item in Orders, Menu Items, Catalog & Fulfilment

Make tax inclusive on a certain item

BrendaFAC — Sat, 20 Sep 2025 10:35:45 GMT

Hello, is there a way to make tax inclusive on a certain item? My situation is that we charge a certain amount per hour for picture frame installation and I include the tax in the labor fee. I can back out the tax and enter it, but I would like to have an easy way to just enter $300 and it backs it out for me.

Re: Make tax inclusive on a certain item

VanKalkerFarms — Thu, 26 Oct 2023 19:09:49 GMT

Yes, you can set a tax to be included in the price. just create a new tax and you can apply it to just that item. the option is at the bottom of the create a tax and says "include tax in the item price".

https://squareup.com/dashboard/business/manual-taxes

Re: Make tax inclusive on a certain item

TheRealChipA — Thu, 26 Oct 2023 19:14:09 GMT

Hi @BrendaFAC. In order to do this, you would have to set up two sales tax rates. Both would have the same percentage, but one would specify that it was included in the item price and the other would specify that it was not included in the item price. Then you would assign each item to the correct sales tax definition. This will allow Square to give you the correct information in your sales tax reports.

One word of warning. Some (if not all) states do not allow you to do this. In my state, for example, we must choose which method we use and use it consistently for all sales and all items. This is something you should talk to your accountant or CPA about before doing it to be sure that you aren’t doing something that is going to get you audited or worse.

Re: Make tax inclusive on a certain item

BrendaFAC — Thu, 26 Oct 2023 22:58:26 GMT

Thank you @TheRealChipA, that is good advice. I will talk with my accountant and make sure I am allowed to do this.

Re: Make tax inclusive on a certain item

BrendaFAC — Thu, 26 Oct 2023 22:59:09 GMT

Thank you! I will see if I can make that work.

Re: Make tax inclusive on a certain item

TheRealChipA — Fri, 27 Oct 2023 00:11:23 GMT

wow @VanKalkerFarms We were stalking each other tonight! Lol