Setting Up Tax Types in NX Restaurant

Tax Types define the specific tax rate being applied and how it is calculated. These are typically created for each individual tax rate (such as state tax, city tax, or liquor tax). Once created, Tax Types are added to a Tax Group, which is what’s actually assigned to taxable items such as menu items, fees, and gratuities.

📌 Note: Tax Types can be displayed on detailed receipts if configured to do so in receipt settings.

How to Set Up a Tax Type

1. Go to Financial > Taxes > Tax Types.
2. Click + New to create a new Tax Type.
3. In the Tax Type Settings form, complete the following fields:
4. Name: Enter a name for the tax (e.g., “City Tax 1.5%”). This name will appear on reports and receipts if enabled.
5. Tax Amount: Enter the tax percentage rate (e.g., 1.50%).
6. Computation Method: Choose how the tax should be calculated:
   • Exclusive: The tax is added on top of the base price.
   • Inclusive: The tax is included in the base price.
7. Click Save to apply your changes.

What Happens Next?

After creating Tax Types, you can:

• Assign them to a Tax Group by navigating to Financial > Taxes > Tax Groups.
  • Learn more on setting up Tax Groups here: Taxes > Tax Groups.
• Apply the Tax Group to: Menu Items, Fees, Gratuities, Delivery Charges, and Other taxable configurations 

Best Practices

• Use clear names (e.g., City Tax 1.5%) for easier reporting.
• Separate each distinct rate into its own Tax Type, even if it applies to the same category of item.
• Review your local tax laws to determine if tax should be calculated as Exclusive or Inclusive.

For help determining the best Tax structure for your operation, contact your NX Support Partner or consult your accounting team.