# Sales tax incorrectly applied to some transactions **URL:** \ **Category:** Questions\ **Tags:** checkout-api\ **Created:** [August 20, 2026, 2:43am UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265 "2026-08-20T02:43:43Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![zslaton](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/zslaton/32/12253_2.png) [@zslaton](https://developer.squareup.com/forums/u/zslaton)\ **Post date:** [August 20, 2026, 2:43am UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/1 "2026-08-20T02:43:43Z")
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. ```auto Transaction 1: XkpNEUxKWefns9gTn5tmEoxS0LYZY ``` ```auto Transaction 2: 5XK1guMhaOJJFhYo7YLCQ872xWeZY ``` Any insight as to why these transactions are different than others would be appreciated. ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [August 20, 2026, 8:33pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/4 "2026-08-20T20:33:35Z")
Hi @zslaton - thank you for raising. Our team is investigating and will respond shortly. ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [August 21, 2026, 3:55pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/5 "2026-08-21T15:55:33Z")
@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. ---
**Author:** ![zslaton](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/zslaton/32/12253_2.png) [@zslaton](https://developer.squareup.com/forums/u/zslaton)\ **Post date:** [August 21, 2026, 4:17pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/6 "2026-08-21T16:17:13Z")
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. ---
**Author:** ![zslaton](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/zslaton/32/12253_2.png) [@zslaton](https://developer.squareup.com/forums/u/zslaton)\ **Post date:** [August 21, 2026, 4:20pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/7 "2026-08-21T16:20:38Z")
There is one other transaction from February that has the issue that I didn’t include in the initial post: ```auto Transaction 3: 76BWfASEFPayJ0S1ridZfxiFIILZY ``` ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [August 21, 2026, 4:53pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/8 "2026-08-21T16:53:09Z")
@zslaton thanks for that - I’ll raise this internally and get back to you. Appreciate the patience as we dig into it! ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [August 24, 2026, 1:55pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/9 "2026-08-24T13:55:53Z")
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. ---
**Author:** ![zslaton](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/zslaton/32/12253_2.png) [@zslaton](https://developer.squareup.com/forums/u/zslaton)\ **Post date:** [August 24, 2026, 5:13pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/10 "2026-08-24T17:13:11Z")
Thanks for looking into it. Can the 3 transactions I identified be updated to non-taxable? The total collected is still correct. ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [August 27, 2026, 3:27pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/11 "2026-08-27T15:27:08Z")
@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. ---
**Author:** ![zslaton](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/zslaton/32/12253_2.png) [@zslaton](https://developer.squareup.com/forums/u/zslaton)\ **Post date:** [August 29, 2026, 12:11am UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/12 "2026-08-29T00:11:53Z")
Will the sales tax report be updated? It still shows an inflated sales tax liability based on those transactions. ---
**Author:** ![jseok](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@jseok](https://developer.squareup.com/forums/u/jseok)\ **Post date:** [September 1, 2026, 5:45pm UTC](https://developer.squareup.com/forums/t/sales-tax-incorrectly-applied-to-some-transactions/27265/13 "2026-09-01T17:45:53Z")
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.