Tax Groups & Rates

📖 Overview 

The Tax Groups & Rates feature gives you the flexibility to apply multiple tax rates to items. This helps you stay compliant with complex tax rules while providing clear, transparent breakdowns on customer receipts.

Note: Printing of multiple tax rates on POS and Kiosk printed receipts is supported in APK version 2.20 and higher (release date is TBD). On APK version 2.19.7 and earlier, the total tax amount on the order will print as a consolidated line item on receipts. Multiple tax rates will appear on separate lines on digital receipts upon feature enablement.

💡 What Are Tax Groups & Tax Rates?

🧮 Tax Groups 
A Tax Group is a collection of tax rules applied to an item. Each group:

• Has an internal name (used for management purposes)
• Applies either:
  • Exclusive tax (added on top of item price), or
  • Inclusive tax (included in the item price)
• Contains one or more Tax Rates
• Can be assigned to individual items

📊 Tax Rates 
Each Tax Rate within a group has:

• A name visible on receipts (e.g. "State Tax")
• A percentage (e.g. 8.75%)

This means items can have multiple taxes, and each will be listed separately on receipts for clarity.

🧾 Example Breakdown 
Here's how tax may appear for different items:

Receipts and order details show each Tax Rate as its own line item.

⚙️ How to Create & Manage Tax Groups

Note: For existing organizations as of 8/14/2025, you will notice Tax Groups and Tax Rates have been automatically pre-populated and assigned to items. 

1. In Canopy 2.0, go to Settings > Tax Groups
2. Click the ➕ in the top right corner
3. Enter an internal name for your new Tax Group
4. Choose your tax rule: Exclusive or Inclusive
5. Add Tax Rates:
   • To create a new one:
     • Enter a name (what the customer will see on receipts and confirmation screens)
     • Enter the percentage
     • (Optional) Enter a revenue code
     • Click Save
   • To use existing rates:
     • Select one or more from the list
     • Click Save
6. (Optional) Assign the Tax Group to specific items:
   • Click the Assigned Items section
   • Choose which items this Tax Group should apply to
   • Click Save

🧭 Pro Tips: 

• You can also assign Tax Groups directly to items by navigating to Menus > Items, then selecting a Tax Group within the item settings.
• Items without a Tax Group assigned will be considered non-taxable.

✅ Once your Tax Groups are set up, your receipts and reporting will accurately reflect all applicable taxes.
 

Reminder: Printing of multiple tax rates on POS and Kiosk printed receipts is supported in APK version 2.20 and higher (release date is TBD). On APK version 2.19.7 and earlier, the total tax amount on the order will print as a consolidated line item on receipts. Multiple tax rates will appear on separate lines on digital receipts upon feature enablement.