Tax Rates vs. Revenue Collection

We want to be transparent about how taxes are calculated. Our system applies tax to each item in your order, and then rounds that individual item's tax amount up or down to the nearest penny. When you add up all those rounded individual item taxes, it might lead to a total that's slightly different from what you'd get if you applied the tax rate to your entire order subtotal. This item-level rounding is standard to ensure precise tax application per product. For a deeper look into how tax rounding works, please see Toast Tax Changes.

Another thing to note is that if the tax on an item is less than $.01, it is not applied. For a deeper look into all things taxes, please see the Taxes overview. To learn the difference between V2 taxes and V3 taxes, please see Toast Tax Changes.