Create Tax-Exempt Menu Items

Last updated: Sep 18, 2026, 11:00 AM

Question

  • How do I set up tax-exempt menu items for my restaurant?
  • How do I indicate a menu item shouldn't have sales tax applied (non-taxable)?

Answer

Tax exemptions vary from state to state, but can range from retail items such as clothing to even specific types of food. If tax-exempt menus or menu items need to be created, you can do so in Toast. 

 

To determine if tax-exempt statuses are needed, consult your state's sales tax exemptions.

 

Follow these steps to configure your tax-exempt menus or menu items settings in Toast Web:

 

A user must have the 4.5 Edit Full Menu permission in order to access the Advanced properties page in Toast Web. Learn more about user access permissions here: Permissions Reference Guide.

     

    1. In Toast Web, navigate to Menus > Bulk management > Advanced properties.
    2. Open the Show/Hide drop-down.
    3. Select Applicable Taxes. A new column should now appear on the Advanced Properties page.
    4. Use the arrow (>) icons on the left side of the page to expand menus to view menu groups and items, if necessary. Use the Applicable Taxes drop-down menu to mark a menu, menu group, or item as tax-exempt by deselecting ALL taxes from the drop-down until it says "None". 
      1. Note: Usually, properties like Applicable Taxes are set at a menu or menu group level, and the items within those sections "inherit" the properties from their parent. If this is the case, "(inherited)" will be listed in the property setting. This means that if a change is made to the menu or menu group, the change will apply to all items set to inherit. However, a change can be made to an individual item without affecting the rest of the group.
    5. Save and publish your changes.