Disclaimer: Treez Support can explain how tax configurations work within the Treez platform, but cannot create, edit, or manage tax settings on your behalf. Customers are responsible for ensuring their tax configurations are accurate and compliant with applicable tax laws. Treez is not liable for tax calculations, filings, penalties, or compliance issues. For guidance beyond this documentation, consult a qualified CPA or tax professional.
Overview
Before taxes can be layered and calculated at checkout, Treez needs to know which tax rates exist and how they should behave. This article walks through how to enter base tax rates, create custom taxes, and understand how those rates are used throughout your tax configuration.
This article focuses on rate setup and tax creation. It does not cover how taxes are layered or compounded.
For an overview of how Treez calculates taxes, see How Taxes Work in Treez.
For instructions on applying taxes to layers, see Configuring POS Tax Layers.
What Are Tax Rates in Treez
Tax rates define the percentage or value used when calculating a tax. These rates are referenced by tax labels and applied during checkout based on your POS tax configuration.
Tax rates are used to:
Calculate sales tax
Support automated tax behavior (Dynamic Sales Tax in CA Only)
Provide rate values for certain tax labels
Rates are entered once and reused across your tax structure.
Accessing Tax Rate Configuration
To manage tax rates, navigate to: Configurations > Config Page > Taxes
From here, you can:
Enter or update base sales tax rates
Create and manage custom taxes
Control which custom taxes are available for POS setup
Sales Tax Rates
The Sales Tax rate represents your standard sales tax percentage for your location.
Important behavior to understand:
This rate is referenced by sales tax labels selected in POS Tax Setup
Updating this rate updates the value used anywhere that sales tax label is applied (Adult Use & Medical-Regular Customers in CA)
Sales tax rates may vary by city or county and should be verified before updating
If your operation uses dynamic sales tax (CA Only), this rate may still be required for non-delivery transactions.
Automated Tax Rates (Dynamic Sales Tax Only)
Some tax labels use automated rates that reference values entered in the Tax Rates section.
When a tax uses an automated rate:
The rate field may be locked or auto-filled
Changes to the source rate automatically affect calculations
No manual rate entry is required in POS Tax Setup
Automated behavior is controlled by the tax label, not the layer configuration.
Creating Custom Taxes
Custom taxes allow you to model state, county, or city-specific taxes that are not included as standard tax labels.
To create a custom tax:
Navigate to the Custom Tax section
Select Add New Tax
Enter a short, descriptive name
Save the tax
Once created, the custom tax becomes available in the Tax Label dropdown during POS tax configuration. You can create up to five custom taxes.
Managing Custom Taxes
Each custom tax includes an on/off toggle.
Important behaviors:
Turning a custom tax on makes it selectable in POS Tax Setup
Turning a custom tax off removes it from future selection
Disabling a custom tax does not remove it from existing POS configurations
If a custom tax needs to be removed from active use, it must also be removed from POS Tax Setup.
For instructions on editing POS tax layers, learn more in Configuring POS Tax Layers.
Naming Best Practices for Custom Taxes
Custom tax names appear on receipts and reports.
Recommended best practices:
Use clear, concise names
Avoid internal abbreviations
Include jurisdiction when relevant
Examples:
City Cannabis Tax
County Excise Tax
State Special Tax
Clear naming helps avoid confusion for staff and customers.
How Rates Are Applied During Checkout
Rates entered in this section are not charged to customers on their own.
A tax rate is only applied when:
The tax label is added to a POS tax layer
The Applies To setting matches the product being sold
The customer type matches the tax configuration
Think of tax rates as inputs, not active charges.
To see how rates are applied within layers, learn more in How Taxes Work in Treez.
What This Article Does Not Cover
This article does not explain:
How to create tax layers
How compounding works
How taxes apply to specific states
How product subtypes affect layering
For those topics, see:
Next Steps
Once tax rates and custom taxes are set up, you’re ready to apply them to your POS tax structure.
Next, continue with: