POS tax for cash sale

Topic summary

A vendor preparing for craft markets wants to charge flat, tax-inclusive prices (e.g., $20 total) to avoid dealing with change from added sales tax at checkout.

Solution Provided:

  • Enable tax-inclusive pricing in Shopify POS through Admin settings
  • Navigate to Settings > Taxes and Duties
  • Check “All prices include tax” option
  • Ensure correct tax rates are configured for your location

How It Works:

  • System calculates tax backwards from the total price
  • Example: $20 sale with 5% tax = $19.05 base price + $0.95 tax
  • Customer pays the flat $20 displayed

Additional Recommendation:
Customize receipt templates to note “All prices include sales tax” for customer clarity, particularly useful at craft fairs where separate tax charges are typically expected.

The question has been resolved with step-by-step implementation instructions.

Summarized with AI on November 1. AI used: claude-sonnet-4-5-20250929.

We are going to be selling at craft markets. I would like to charge a flat price for a product and have the tax taken out of that price. I don’t want to charge $20 then have to deal with change because of the added tax. Is there a way to do this in the pos app. Thanks.

1 Like

Hi @Antkn33

I’ve gone through your question carefully and totally get what you’re trying to do—you want your product prices to be tax-inclusive so that customers pay a flat amount (e.g., $20 total) instead of dealing with odd change from added sales tax.

Solution: Enable “Include Tax in Prices” in Shopify POS

Yes, you can set up Shopify POS to automatically include tax within your product prices. Here’s how to do it:

Step 1: Enable Tax-Inclusive Pricing1. Go to your Shopify Admin (not the POS app).

  1. Click on Settings > Taxes and Duties.
  2. Under Tax calculations, check the box that says: “All prices include tax”

This tells Shopify to treat your product prices as already having tax included.

Step 2: Ensure the Correct Tax Rates Are Applied1. Still in Taxes and Duties, scroll to your country’s tax settings.

  1. Make sure your tax rates (state/province) are set up correctly. Shopify will now calculate tax backwards from the total price.

Example Calculation- You sell a product for $20 (flat).

  • Your tax rate is 5%.
  • Shopify will calculate the base price as $19.05, and the included tax as $0.95, keeping the total at $20.

Bonus Tip: Add a Note on Receipts

If you want to make it clear to customers that tax is included, you can edit your receipt template in the POS settings to say something like:
“All prices include sales tax.”

This avoids confusion, especially at craft fairs where people expect tax to be added separately.

Let me know if you need any other help setting this up!
Best regards,
Daisy.