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Understanding Taxes and Service Fees
Understanding Taxes and Service Fees

Learn how sales tax and service fees are calculated and why they appear at checkout.

Updated over a month ago

Overview

When you place an order on Homegrown, you may notice taxes and a small service fee applied at checkout. This guide explains why these charges exist, how they’re calculated, and where you can see them before completing your order.


How Taxes Are Calculated

  • Sales tax is based on either:

    • The pickup location (if you’re picking up your order).

    • The delivery address (if your order is being delivered).

  • Homegrown automatically calculates and collects the appropriate tax, ensuring compliance with state and local tax laws.

  • Since tax rates vary by location, the exact amount is displayed at checkout, not in your cart.

💡 Fun Fact: Homegrown handles sales tax collection for vendors—so they can focus on selling instead of dealing with tax paperwork! 🎉


What Is the Service Fee?

  • Homegrown charges a flat $0.99 service fee per order to help cover platform costs.

  • This fee allows vendors to sell on the platform with lower costs and minimal overhead.

  • The service fee is not affected by order size—it stays the same whether you buy one item or multiple.

💡 Fun Fact: Unlike other platforms that take a percentage of every sale, Homegrown’s flat service fee model keeps pricing predictable for vendors and shoppers!


Where Can I See These Fees?

  • On the checkout page, you’ll see a breakdown of:

    • Subtotal (cost of items before taxes/fees).

    • Sales Tax (determined by pickup location or delivery address).

    • Service Fee ($0.99 per order).

    • Final Total (the amount you’ll be charged).

  • You can hover over the "Taxes and Fees" tooltip at checkout to see a breakdown of the charges.


Frequently Asked Questions

Why isn’t sales tax shown in my cart?

Since sales tax is determined by your pickup or delivery location, it is calculated at checkout once this information is confirmed.

Is the service fee refundable if I cancel an order?

If your order is canceled before it’s processed, the service fee may be refunded along with your payment. However, once an order has been processed, the service fee is non-refundable.

Do vendors receive any part of the service fee?

No, the service fee is collected by Homegrown to support platform operations, keep vendor costs low, and improve the marketplace experience.

💡 Fun Fact: Many platforms charge vendors high listing or transaction fees, but Homegrown’s model ensures more of your money goes directly to local vendors! 🌱


Next Steps

Now that you understand taxes and fees, you're ready to:
➡️ Proceed to Checkout

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