You can create sales taxes from your Square Dashboard and point of sale app. You can manage them for specific fulfillment methods from Square Dashboard only.
Step 1: Add tax enrollments to automatically calculate US taxes
To add a new tax enrollment:- Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Sales taxes.
- Under Tax Enrollments, click Manage.
- Click Add tax enrollment to choose a taxing state from the dropdown menu, then click Add state. Repeat as needed.
- Click Done.
Step 2: Create sales taxes
- Sign in to Square Dashboard and go to Settings > Account & Settings > Payments > Sales taxes.
- Click Create tax.
- Under Details, enter a tax name and rate, and select the locations where the rate applies.
- Under “Tax application,” click the dropdown menu and choose either All current and future taxable items at selected locations, or Select items to choose specific items to apply the rate to. If an item is set as non-taxable, taxes won’t be automatically applied to the item on any in-person or online orders.
- Toggle on Apply tax to custom amounts to apply the tax to any custom amounts added to the cart.
- Under “Tax calculation,” choose either Additive tax to add the tax as a separate line item on your customers’ receipts, or Inclusive tax to include the tax in the item price.
- Under “Tax exemption,” toggle on Add exemption rule to specify when this tax should not be applied.
- Click Save.
Square Support Article on Tax Settings click here
DISCLAIMER: Although Square provides tools that help you efficiently create and manage taxes, we cannot guarantee the applicability and accuracy of our tax tools. We also cannot offer tax advice or consulting services. It is solely your responsibility to accurately configure, charge, collect, and remit applicable taxes on your orders. To ensure taxes are applied and filed correctly for your specific business needs, we recommend consulting a tax advisor.