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Overview

If you charge sales tax on your baked goods, Knead can apply it automatically to every invoice. You set the rate and label once, and Knead handles the math from there.

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Where to Find Tax Settings

  1. Tap Settings in the main navigation.
  2. Tap Business.
  3. Scroll to the Tax section.

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Setting Your Tax Rate

Enter your tax rate as a percentage. For example:
  • 8.25 for 8.25% sales tax
  • 7 for 7% sales tax
  • 10 for 10% GST
Knead applies this rate to the subtotal of every new invoice. The tax amount is calculated automatically and shown as a separate line item.
Good to know: Changing your tax rate only affects new invoices. Existing invoices keep the rate that was applied when they were created. This protects your records and ensures past invoices remain accurate.

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Customizing the Tax Label

The tax label controls what your customers see on their invoices. Common options include:
  • Sales Tax — Standard for most US-based bakers
  • GST — Goods and Services Tax
  • VAT — Value Added Tax
  • HST — Harmonized Sales Tax
Enter whatever label matches your local tax requirements. The label appears next to the tax amount on every invoice.

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If You Do Not Charge Tax

If your cottage food operation is tax-exempt, leave the tax rate at 0 or empty. Knead will not add a tax line to your invoices. Many cottage food laws exempt home bakers from collecting sales tax. Check your state or local regulations to confirm.
Pro tip: If your tax rate changes (for example, your county updates its sales tax), update it in Settings right away. All invoices created after the change will use the new rate.

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How Tax Appears on Invoices

On a customer-facing invoice, tax is shown as:
  • Subtotal — The total before tax
  • Sales Tax (8.25%) — The tax line, using your label and rate
  • Total — The final amount including tax
The breakdown is clear so customers understand exactly what they are paying.
Still need help? Contact us