Sales tax incorrectly applied to some transactions

Two transactions captured using checkout API payment links on February 9 are incorrectly marked as taxable, despite payment option parameter “autoApplyTaxes” always being false. All other transactions created using this integration work fine and don’t have sales tax included. As far as I know, account tax settings haven’t changed before or since, so there’s no reason for this inconsistency.

Transaction 1: XkpNEUxKWefns9gTn5tmEoxS0LYZY
Transaction 2: 5XK1guMhaOJJFhYo7YLCQ872xWeZY

Any insight as to why these transactions are different than others would be appreciated.

Hi @zslaton - thank you for raising. Our team is investigating and will respond shortly.

@zslaton - thanks for your patience. We are still investigating this internally. As part of the investigation, do you have any recent examples of this happening? Preferably within the last two weeks? This would help more closely identify the root cause.

Unfortunately I don’t have any other examples. We only noticed this issue after seeing an unexpected sales tax liability on some reports, and after tracking it down we found these transactions.

There is one other transaction from February that has the issue that I didn’t include in the initial post:

Transaction 3: 76BWfASEFPayJ0S1ridZfxiFIILZY

@zslaton thanks for that - I’ll raise this internally and get back to you. Appreciate the patience as we dig into it!

Hi @zslaton - thank you for your patience while our team investigated this!

We confirmed that the team identified a bug on February 9, 2026 that caused sales tax to be incorrectly applied to some payment-link transactions, even when auto_apply_taxes was disabled. A fix was deployed on February 10, and this behavior should no longer occur for transactions processed after the fix.

If you find an affected transaction processed after February 10, please share its transaction ID so we can investigate further.

Thanks for looking into it. Can the 3 transactions I identified be updated to non-taxable? The total collected is still correct.

@zslaton - We were able to adjust the three transactions that you named and removed the tax value. The UI may still show those orders as being taxed, but the order objects on the back end should be updated. Thanks for your patience while we worked through this.

Will the sales tax report be updated? It still shows an inflated sales tax liability based on those transactions.

The sales tax report should be updated now - there may be some lag in the UI reporting, but the underlying data has been updated to correctly remove the tax on the original orders.