thread Re: Square randomly started adding sales tax to my payment links in Payments Troubleshooting

Square randomly started adding sales tax to my payment links

bmueckl — Wed, 25 Mar 2026 14:00:30 GMT

Square randomly started adding sales tax to my payment links as of yesterday. These are for fitness classes which are not subject to NYS sales tax and I have tried everything, including disabling sales tax all together. My prices on my website no longer reflect what is being shown to clients and so I can not sign up anyone new. Is this an issue happening on the back end? I have combed through every solution I could find, only to find out dated fixes or solutions I have tried multiple times. Again I have completely disabled sales tax and then even tried to create a new payment link, but it keeps adding in sales tax.
Please help.

Re: Square randomly started adding sales tax to my payment links

bmueckl — Wed, 25 Mar 2026 14:21:43 GMT

I just found if I deselected my location and made it as " no location" in the Sales Tax section, it did disable sales tax for my payment links, but of course this did disable it for items I sell at my gym which are subject to sales tax. So I guess I'll just create a manual service charge for the tax and track my sales tax manually for now, but this is not ideal long term. Still would like to find out this all randomly changed yesterday. I did not fool around with the settings whatsoever.

Re: Square randomly started adding sales tax to my payment links

Eric2141 — Wed, 08 Apr 2026 14:55:49 GMT

I’m experiencing the same issue, and it’s becoming a serious concern.

A few months ago, I noticed that a small number of customers were being charged sales tax when paying through a fixed payment link that we’ve been using consistently for over a year. At the time, it seemed random and infrequent, so I assumed it might be some kind of legitimate or system-related charge and didn’t pursue it further.

However, starting yesterday, the situation escalated significantly. Around 90% of payments made through the exact same payment link are now being charged sales tax. This is clearly not correct, especially since:

Our services should not be taxed
Tax settings are disabled
Random transactions are not being taxed
No changes were made to the payment link or account configuration

I contacted support and spent over an hour speaking with multiple agents. The experience was frustrating and inconsistent:

The first agent acknowledged the issue seemed abnormal but could only suggest disabling taxes account-wide (which is a temp fix)
After being placed on hold multiple times, I was transferred to another agent who confirmed this behavior is not normal

Their suggested solution was to refund the collected tax. However, this creates another problem:

The tax appears as a separate line item on the receipt
There is no option to selectively refund just the tax
If I issue a manual partial refund, the system still records the tax as “collected,” which means I may still be liable to remit it to the state

I am currently still on hold trying to get a clear resolution.

This is a financial system—unexpected tax charges and lack of proper refund handling should not be happening. I’m sharing this here to see if others are experiencing the same issue and to push for a proper explanation and fix from Square.

===========================

Update: After being on hold for an extended period, the representative told me I needed to wait a bit longer to be transferred to another agent. It didn’t sound like I had much of a choice. After an even longer wait, the automated system offered a callback option instead of continuing to hold.

At that point, I couldn’t stay on the line any longer, so I left my number and am waiting for a callback.

I’ll share more updates once I hear back.

==========================================================

Update 3/31

After a few days of waiting, I finally received a response from a Square Application Support Engineer, but unfortunately the issue is still being dismissed rather than addressed.

They are describing this as an “enhancement” to better align with tax regulations and suggested that I consult a tax professional. However, this does not explain the inconsistent and intermittent behavior—taxes were applied randomly to the same payment setup, then stopped, and later appeared again. That points to a system issue, not a configuration or compliance matter.

At this point, it feels like the problem is being deflected rather than investigated. Given that multiple users are reporting similar experiences, this may indicate a broader issue rather than isolated cases.

I have escalated this further and requested a formal explanation and resolution. I would encourage others experiencing the same problem to do the same—continued escalation is likely the only way to get this properly reviewed.

If this cannot be resolved, it may need to be raised with appropriate regulatory authorities due to the financial and tax reporting implications involved.

I’ll share updates if I hear anything further.

=======================================

Update 4/1

I just received another response, they’re basically saying:

“System worked as designed”
“It was due to my configuration”
“They can’t fix past transactions”
“I am responsible for the tax reporting”

They are trying to :

Close the case
Avoid admitting a bug
Push all financial responsibility onto me (the user)

Where this explanation is weak

There are two big holes in what they wrote:

1. “Phased rollout” = controlled inconsistency (their problem, not my)

They admitted:

“early stages… taxes could be influenced by both settings”

That’s a problem.

I (We the users) cannot have a system where:

Same payment link
Same setup
Different tax outcomes

and call it “working as designed.” That’s not compliance-safe behavior.

Even if we accept their explanation:

we were never clearly informed this would happen
I / we the user had no clear toggle or control to prevent it
The behavior changed mid-operation

That’s not acceptable for anything tied to tax collection.

The biggest issue here: “Square does not have the ability to retroactively modify or remove taxes”

in reality:

They may not allow support agents to do it
But at the system level, they absolutely can adjust reporting or issue corrections

They just don’t want to.

I run a business and we collect more than 1million every year through Square. I cannot believe I have to deal with this kind of issue and wasting tons of my time here.

=====================================

Today is April 8th, it's been 7 days since I last time replied to the Square Application Support Engineer, still no responses.

Seven days with no response usually means one of two things:

It’s sitting in a queue they don’t want to deal with
Or it already got escalated internally and no one owns it yet

Re: Square randomly started adding sales tax to my payment links

Buffalonabi — Thu, 26 Mar 2026 13:03:29 GMT

Just came here to say that I’m experiencing exactly the same issue randomly started yesterday.

Re: Square randomly started adding sales tax to my payment links

bmueckl — Thu, 26 Mar 2026 18:31:33 GMT

It really is ridiculous and a huge source of stress. May have to start the unpleasant task of migrating to another platform if this isn't remedied.

Re: Square randomly started adding sales tax to my payment links

tim22980 — Sat, 28 Mar 2026 18:38:52 GMT

Did you ever get a resolution? I got a lot of being bounced around on chat and then told I'd have to reconnect later. THis is pretty terrible support.

Re: Square randomly started adding sales tax to my payment links

Eric2141 — Sat, 28 Mar 2026 21:59:44 GMT

Not yet. The U.S.-based technical support team (which appears to be a higher-level support tier) was supposed to follow up with me two days ago. According to the representative, it usually takes less than 24 hours, but I have not received any response so far. She mentioned that the issue would be escalated to the engineering team, but it seems this may be challenging even at that level. At this point, it feels like there may be broader issues with their backend system.

Re: Square randomly started adding sales tax to my payment links

tim22980 — Sun, 29 Mar 2026 21:22:57 GMT

I was told by support that this a feature, not a bug. I really wish I would've screen-shotted the conversation so I could relay it verbatim, but the gist is that they decided to make the same tax settings apply to every channel, and this update was applied earlier this week. Apparently, without notice. I hope this is wrong information I was given.

Re: Square randomly started adding sales tax to my payment links

groovyghost — Sun, 29 Mar 2026 18:22:38 GMT

I'm also experiencing this issue all of a sudden. Glad to see I'm not alone, but this is frustrating to see there's no current solution.

Re: Square randomly started adding sales tax to my payment links

Gallery408 — Sun, 29 Mar 2026 18:47:41 GMT

Me Too. Two days ago my Payment link for an online submission form has started added our sales tax. Can't find the toggle they say to toggle off in the general payment link settings, there is no Automatic applied tax bottom to toggle off. I have looked everywhere. Also, do you know, Square take fees from the sales tax so if you refund your customers, you are still out the 3% fee they took from the sale and tax. I don't think they should be able to take a fee from sales tax since we are collecting it for the state, but that a different annoying subject.

Re: Square randomly started adding sales tax to my payment links

GCCMB1 — Tue, 31 Mar 2026 16:36:38 GMT

This is a serious issue. The site is charging my clients a "Provincial Sales Tax" even though none applies to it and it charges Sales Tax on top of Sales Tax already included in the price of the item. This is not only wrong but ILLEGAL Now I have to refund the overpayment, it screwa up all tax reporting and I DO NOT GET BACK the fees charged to me. Seems like a money making ruse by Square. Class Actiopn Law Suit coming.

Re: Square randomly started adding sales tax to my payment links

GCCMB1 — Tue, 31 Mar 2026 17:06:17 GMT

Here is the CHAT with Support. Please do contact them as well.

Support agent

Today
Automated - 11:43 am
Thanks for contacting Square support. Someone will be with you soon.
Your estimated wait time is 5 minutes.
A support agent has joined the chat and will be ready to help in just a minute.
Hi, thank you for contacting Square, my name is Santiago.
I truly appreciate the time you took to contact us through chat support, I'd love to help!
Support agent - 11:45 am
I hope you're having a nice day!
How can I help?
Square has started to charge additional tax on linked events. All my clients are being overcharged. When will this be fixed?
11:46 am
The site is charging my clients a "Provincial Sales Tax" even though none applies to it and it charges Sales Tax on top of Sales Tax already included in the price of the item. This is not only wrong but ILLEGAL Now I have to refund the overpayment, it screwa up all tax reporting and I DO NOT GET BACK the fees charged to me. Seems like a money making ruse by Square.
issue started a week ago and your clients are just starting to realize this.
11:48 am
https://community.squareup.com/t5/Payments-Troubleshooting/Square-randomly-started-adding-sales-tax-to-my-payment-links/m-p/839605
Thanks for clarifying
Support agent - 11:50 am
Let me get you transferred over to our online team so they can assist you with your online site
Automated - 11:50 am
Please hold while we connect you to a specialized team member who can help.
Your estimated wait time is 5 minutes.
A support agent has joined the chat and will be ready to help in just a minute.
Support agent - 11:52 am
Thank you for contacting Square Customer Success; My name is CJ It's a pleasure for me to help. Allow me to have 1-2 minutes to review your previous conversation, and I'll get back to you.
11:53 am
Want to try yourself? I can send yopu the links.
11:55 am
Here is the link showing ( Taxes Included) (one tax only) https://checkout.square.site/merchant/1CYJ97VM6K7T9/checkout/ON6WEYTJPWD7YU7#########
Support agent - 11:55 am
Thanks for waiting. I do understand that this issue at hand could potentially affect your business. Rest assured, I'll be going to assist you accordingly.
11:56 am
now hit the checkout button and you see that 12 % additional tax gets added on top of the already included tax. So there is tax on tax and you charge your higher fee as well. Does that seem legal to you ?
Support agent - 11:59 am
I appreciate the additional details you’ve provided. With a recent Square update, payment links are now synced with the sales tax settings in your dashboard. Previously, these were managed separately, but now your tax registration and setup will automatically apply to your payment links, helping ensure your taxes are calculated accurately and consistently. Furthermore, if you don't want to add sales tax on your payment links you must need to disabled it from your sales tax settings.
12:00 pm
Sorry your update is faulty and makes no sense. All my settings are correct and work just as they should.
12:02 pm
If the same product is on the website it works just fine. No additional Tax charged. YOU CANNOT JUST START CHARGING ADDITIONAL TAX WHEN TAX IS ALREADY INCLUDED !!!!! THE PROBLE IS ACTUALLY IN YOUR PROGRAMMING.
I understand this is overwhelming news for you, but please know that we're currently looking at this matter, and hopefully in the next update the sales tax on the payment link will be managed separately again.
Support agent - 12:02 pm
May I have your full name and your email address for me to verify and check your account?
12:03 pm
R#### k####### treasurer@#########.ca

Re: Square randomly started adding sales tax to my payment links

GCCMB1 — Tue, 31 Mar 2026 17:31:58 GMT

Support agent - 12:06 pm
Thanks, Ralf.
12:08 pm
So you overcharged my clients (12% taxes) and me ( higher fees) I need to refund all the extra taxea and I need to fix the tax reporting and I need a refund for your overcharged fees. How do we go about that?
Square Tax Issue.jpg
Image · 91.66kB
12:11 pm
As you can see here all was correct until your weird update last week when suddenly oops 12% more being charged.
12:12 pm
your attemted explaniation is BS. Your website coders screwed up. You need to admit and FIX.
A support agent has joined the chat and will be ready to help in just a minute.
Support agent - 12:14 pm
👋 Hello, Thank you for contacting Square Customer Success! My name is Ritz. Allow me to review the previous conversation to assist you. Please give me 3-5 minutes. Thank you!
What happened to the previous aganet?
12:14 pm
agent
Support agent - 12:15 pm
The previous agent had to step away so l will be stepping in to assist you. Just a moment here so I can catch up with the issue.
Automated - 12:20 pm
The chat will end in 5 minutes. If you still need help, select "Yes, continue" below or send a message.
12:20 pm
Yes, continue
Support agent - 12:20 pm
I’m really glad you brought this to my attention, and I’m sorry for the confusion and frustration this has caused. To make sure that we are aligned, you wanted to request for a refund for the overcharged fees and you wanted to fix the tax reporting. Correct?
12:20 pm
Here is the answer that would be expected: I have reviewed the issue and it does seem indeed that our website programmers have release a version of code that has nonextended consequences for many client accounts. We are reviewing this with high priority. In the meantime, let me assure you that any overcharges will be refunded to you accordingly especially for the refunds you have to process for your clients. We will also make any adjustments to the reporting that shows the wrongly collected taxes. We have escalated this issue that obviously more of our clients are experiencing and will inform you of a resolution as soon as possible.
Support agent - 12:23 pm
I completely understand that's the answer you are expecting but please allow me to further investigate this.
Support agent - 12:27 pm
Appreciate your patience. After reviewing your concern, I found that it falls outside my area of expertise. I will promptly transfer your case to our Specialized Team, who will assist you further. Kindly remain on the line while I connect you to them.
Automated - 12:27 pm
Please hold while we connect you to a specialized team member who can help.
Your estimated wait time is 5 minutes.
A support agent has joined the chat and will be ready to help in just a minute.
Support agent - 12:27 pm
Hey! Thank you for getting in touch with Square Customer Success. My name's Valerie—how can I help?☺️
12:28 pm
You have my email. I do expect a ticket being opened and escalated. This is not MY PROBLEM. It is yours to be fixed. MANy have the same issue but have not realized it. Please communicate with me through my email, not necessary over this chart. I do expect the programming to be rolled back of fixed so tha LINKS to products act exactly as products listed on the ste. There is absolutely to resaon for them to be hit with additional taxes not specified ANYWHERE ( Again the explanition give earlier is BS) I also expet to receive a refund for all the overcharged fees and a correction of the Reporting to show the actual tax I owe to government.
12:29 pm
I don't even want to know why this is the 4th AGENT in this exchange. I have copied this threat for all to see in the Square cummunity forum.

Re: Square randomly started adding sales tax to my payment links

Gallery408 — Wed, 01 Apr 2026 00:54:01 GMT

I did the same thing. I got a robot helping me which only got me so far.

Instead of a payment link, I just created a item for my link. The item does not have sales tax. Then I added the item link to my button in editor. I'm not sure how this is gonna affect my accounting but at least it's a solution until they fix the payment link. I can't refund my customers every time they pay for a non-taxable item.

https://www.gallery-408.com/product/-408-call-for-artwork-submission-2026/TUC3XUJW7IHFNVMFETLCGWKH

I'm still really frustrated that the payment link isn't working that worked for two years. It is on their end they need to fix this.

Re: Square randomly started adding sales tax to my payment links

Gallery408 — Wed, 01 Apr 2026 03:40:29 GMT

I have been trying to fix this all week.

Forget the payment link.... Instead of a payment link, I created a item for the amount of my payment link. The item does not have sales tax. Then I added the item link to my button in editor. I'm not quite sure if this is a real solution, but it seemed to work on my end. I went onto my website like I was trying to use my payment link and there was no tax added.

Re: Square randomly started adding sales tax to my payment links

animatedbrewing — Wed, 01 Apr 2026 20:11:23 GMT

This is so **bleep**ed. just noticed our customers paying the tax too. taxes are built into our invoices and i need them to pay the exact amount without taxes added. SQUARE NEEDS TO FIX THIS.

Re: Square randomly started adding sales tax to my payment links

VanKalkerFarms — Wed, 01 Apr 2026 23:28:27 GMT

This definitely seems like a serious thing as it looks to be affecting multiple users. I have tagged a mod, so hopefully someone can chime in from Square. Unfortunately, I'm just another Square user; I can't help with this. I haven't ever used payment links so I wouldn't be of any help. Just commenting to try and bump the thread.

Re: Square randomly started adding sales tax to my payment links

groovyghost — Wed, 01 Apr 2026 23:30:14 GMT

Mine seems to have fixed itself as of yesterday.

Re: Square randomly started adding sales tax to my payment links

GCCMB1 — Wed, 01 Apr 2026 23:45:41 GMT

There has been a solution found ( no thanks to Square) They added a new area in Settings- Taxes-Sales Taxes called "Tax Enrollments and forgot to notify anybody. It was set to be ON as default. This added all possible taxes in your location on top of all products in the cart, even if it was already included as per individual tax codes set. The problem here is: 1. No information aobout this new section 2. Default was set to ON screwing up all checkouts. 3. Support has no clue or training, 4. I had to refund all clients who overpaid and apologize. 5. I had a loss of reputation and trust as Square made me look like an idiot 6. Higher fees paid for additional taxes charged 7. No refund on Fees for all the refunds I had to make. SO much time wasted with the untrained "Support Staff"

Re: Square randomly started adding sales tax to my payment links

GCCMB1 — Thu, 02 Apr 2026 15:00:17 GMT