# Taxes > Add the sales tax Lilo charges at checkout, give a location its own rate, and see what's taxed, how tax rounds and how discounts change it. Source: https://heylilo.co/help/settings/taxes Lilo adds sales tax to the bill at [checkout](https://heylilo.co/help/payments/checkout). The owner or an admin sets your tax rate in [**Settings** → **Taxes**](https://app.heylilo.co/dashboard/settings?tab=taxes). Lilo works out the tax on each service and product it covers. ## Add your tax rate **Applies to:** Owners and admins 1. Go to **Settings** → **Taxes** and select **Add Tax Rate**. 2. Enter a **Tax Name**, like the name of your state's sales tax. 3. Enter the **Rate (%)**, like 8.25. 4. Under **Applies To**, leave **Services** and **Products** on. Turn one off if you don't charge tax on it. 5. Select **Add Tax Rate**. You'll see **Tax rate created successfully**. Your first rate is marked **Default**, and Lilo charges it from then on. In the Lilo app, go to **More** → **Business Settings** → **Taxes** and tap **+**. The fields are the same. ## Change or delete a rate **Applies to:** Owners and admins 1. Go to **Settings** → **Taxes** and select the pencil next to the rate. 2. Change what you need. 3. Select **Save Changes**. You'll see **Tax rate updated successfully**. To make a different rate the default, change it as above and turn on **Set as Default**. To delete a rate, select the trash can next to it, then **Delete**. If you delete your default rate, make another one the default. In the Lilo app, tap the rate to change it. To delete it, tap **Delete Tax Rate**, then **Delete**. ## Give a location its own rate **Applies to:** Lilo Pro · Owners and admins If one location charges a different tax, give it a rate of its own. 1. Go to **Settings** → **Taxes** and select **Add Tax Rate**. 2. Enter the **Tax Name** and **Rate (%)**. 3. Under **Location (optional)**, choose the location. 4. Set **Applies To** for that location. 5. Select **Add Tax Rate**. The rate shows under **Location Tax Overrides**. You can't move a rate to another location. Delete it and add it again instead. In the Lilo app, choose the location under **Location** when you add the rate. ## How it works - Lilo adds tax on top of your prices. Your prices don't include tax, and your booking page tells clients so. - Lilo charges one rate on each bill. When there's more than one business-wide rate, it uses the one marked **Default**. - Lilo taxes every service when your rate has **Services** on. You can't turn tax off for just one service. - Lilo taxes a product when your rate has **Products** on and the product's **Taxable** switch is on. See [Products and stock](https://heylilo.co/help/inventory/products-and-stock). - Tips aren't taxed. - Lilo works out the tax on each line of the bill and rounds any part of a cent up. - If someone changes a price at checkout, Lilo taxes the new price. - The checkout **Summary** shows the **Tax**. Receipts show it too. - If a location has its own rate, Lilo uses it there instead of your business-wide rate. That rate's **Applies To** switches decide what's taxed at that location. ### Discounts and tax Lilo works out the tax before a promo code comes off. So the client pays tax on the price before the code, and a 100% off code still leaves the tax to pay. See [Discounts and promo codes](https://heylilo.co/help/settings/discounts). [Loyalty points](https://heylilo.co/help/marketing/loyalty) work the same way. Tax stays on the price before points. [Referral rewards](https://heylilo.co/help/marketing/referrals) work the same way. **Applies to:** Most business types [Membership vouchers](https://heylilo.co/help/marketing/memberships) work the same way. Member discounts are different. Lilo taxes the price after a member discount. ### Payments at booking Clients who pay online when they book pay your prices without tax. That goes for deposits and full payments. Lilo puts the tax on the appointment's invoice, so it's left to pay at checkout. See [Deposits and payment at booking](https://heylilo.co/help/payments/deposits-and-booking-payments). Lilo never charges tax on a deposit it keeps after a late cancellation or no-show. ## Common questions ### Why wasn't tax charged? Usually it's one of these: - There's no tax rate for that location. - The rate has **Services** or **Products** turned off. - The product has **Taxable** turned off. - The invoice was paid before the rate was added. Lilo doesn't add tax to paid invoices. ### Why is there tax on the full price when the client used a promo code? Lilo works out the tax before the code comes off. The client pays tax on the price before the discount, even with a 100% off code. ### A client paid in full when they booked. Why do they still owe money? Usually it's the tax. Online payments cover your prices without tax. The tax is left to pay at checkout, along with anything you add there, like a product. ### Can my prices include tax? No. Lilo always adds tax on top of your prices. ### Can we charge two taxes, like a state and a city tax? Lilo charges one rate on each bill. Add the two together and enter that as your rate. ### Why is the tax a cent more than I worked out? Lilo works out the tax on each line of the bill and rounds any part of a cent up. A bill with several lines can come to a cent or two more than taxing the total. Even a single line can come out a cent above the exact amount. ### Does changing the tax rate change old invoices? No. Invoices that are already paid keep the tax they were charged. ### Does Lilo look up our tax rate or file our taxes? No. Your business enters its own rate, and Lilo charges it at checkout.