Add a Tax to an Individual Item

Last updated: Nov 20, 2025, 2:03 PM

Question

  • Can we add a tax to an individual item?
  • Can I add a service charge to an individual item?

Answer

Yes, a tax can be added to an individual item. In some jurisdictions, prepared items are taxed differently, such as hot versus cold (pre-packaged) items; similarly, a service charge or tax like a 5-cent bottle deposit could be added as a fixed tax rate. This process is applicable any time a fixed or percentage charge is required for individual menu items that need to be shown separately on the Sales Summary report.

 

To add a tax to a single item, you would use the Tax tools in Toast Web, where you have State and Local Tax configured.

 

  1. In Toast Web, navigate to Menus > Settings > Manage tax rates.
  2. Add a new tax and give it a name. 
  3. After adding the service charge, navigate to Menus > Bulk management > Advanced properties.
  4. Use the Show/hide option to show Applicable Taxes, and add your new tax to whatever individual items, groups, or menus need it.

 

Each individually configured tax is broken out individually in the Sales Summary report, so you can easily see how much tax was collected in a certain time period. 

Additional Information

For more information on how to configure or manage tax rates, please refer to this article: Set Up Tax Rates and Adjust Tax Options.