> ## Content Index > Fetch the complete content index at: https://blog.payment.co/llms.txt > Use this file to discover other available public pages before exploring further. # Automatic sales tax on in-person Stripe sales - URL: https://blog.payment.co/automatic-sales-tax-in-person-stripe/ - Published: 2026-11-03T15:00:00.000Z - Updated: 2026-11-03T15:00:00.000Z - Description: Stripe Tax can now calculate the tax on every in-person sale in the Payment app, from the keypad or your product catalog. - Author: Ryan Scherf - Tags: Stripe, Taxes, Payments Sales tax used to be the one thing you had to figure out on your own when selling in person with Stripe. You'd look up your local rate, type it into the app as a percentage and hope you remembered to update it when the rate changed. With Stripe Tax and the Payment app, the tax on every in-person sale can now be calculated for you, whether you ring it up on the keypad or from your product catalog. ##### How does automatic tax work in person? When you take a payment, the app asks Stripe Tax to calculate the tax for that sale based on your business address and the places you're registered to collect tax in your Stripe Dashboard. The tax is added before your customer pays, so the amount they tap or insert already includes it. Stripe then records the tax on the payment, which means it shows up in your Stripe Tax reports alongside your online sales. Tips are never taxed. In addition, if your Stripe Tax settings say your prices already include tax, the app follows that and shows "Tax included" instead of adding it on top. If you haven't set a default, tax is added on top for US and Canadian dollars and included in the price for every other currency, which matches how prices are usually shown in those countries. ##### How do I turn it on? Open Settings in the Payment app, scroll to **Taxes, Gratuity & Fees** and turn on **Collect tax automatically**. That's it. The keypad shows a small "Automatic tax" tag under the amount so you always know it's on, and the payment screen reads "$24.00 + tax" before your customer pays. If Stripe still needs something from you, the app asks right there. Stripe Tax can't calculate anything without a business address, and it needs to know roughly what you sell. You'll see a short prompt for your address, or a "What do you mainly sell?" choice between physical goods, food and drinks, services and digital goods. Your answer is saved to your Stripe Tax settings, so you only do this once. If you're in a hurry, you can skip tax for that one sale and finish setup later. > Imagine the following scenario: A customer at your Saturday market stall buys a $24.00 candle set. You type 24 on the keypad and hand over the phone. Stripe Tax adds $2.17 for your location, the customer taps $26.17, and the receipt shows the tax as its own line. ##### Where does the tax come from? The tax is always based on your business location, not your customer's address. That's how in-person sales are generally taxed, since the sale happens where you are. On iPhone, the app uses the head office address in your Stripe Tax settings, then your company address. On Android, there's a Tax location screen where you can check or change it. One thing that catches people off guard: if you haven't added any tax registrations in Stripe, the tax on every sale will be $0\. Stripe only collects tax where you've told it you're registered, so add your state or country registrations under Tax in your Stripe Dashboard first. ##### What happens when I refund a sale? Stripe reverses the tax for you, on full and partial refunds, so your tax reports stay accurate without any extra steps. ##### What does Stripe Tax cost? Stripe Tax is billed by Stripe, separately from your processing fees, and only for sales where you're registered to collect tax. Keypad sales use Stripe's tax calculation API, which costs 50ยข per transaction. Product sales go through Stripe invoices, which cost 0.5% per transaction. If you'd rather avoid the per-sale cost on small sales, a fixed tax rate in the app still works, though you can't use both at once. ##### Are there any limits? A few. Offline sales can't be taxed automatically, since Stripe has to be reached to calculate the tax, and the app will warn you before taking one. Customer tax exemptions aren't supported yet. Automatic tax works on iPhone, iPad and Android, with Tap to Pay, card readers and cards typed in by hand. For more on tax rates, inclusive pricing and setting up Stripe Tax: [our guide to taxes in the Payment app](https://paymentforstripe.com/guides/taxes?ref=blog.payment.co&utm%5Fsource=blog.payment.co&utm%5Fmedium=referral&utm%5Fcampaign=automatic-sales-tax-in-person-stripe&utm%5Fcontent=closing).