Overview
Homegrown collects and remits sales tax on behalf of all vendors, ensuring compliance with state and local regulations. This guide explains how sales tax is calculated, how it appears in your ledger, and what you need to know for your records.
Who Handles Sales Tax?
Homegrown automatically calculates, collects, and remits sales tax for every order.
This means you don’t need to file or remit any sales tax for sales made through the platform.
Tax is based on the pickup or delivery location associated with each order.
💡 Fun Fact: Many marketplaces leave tax compliance to vendors—Homegrown takes care of it for you, saving time and reducing risk!
How Sales Tax Appears in Your Ledger
For each order, you’ll see a Tax transaction showing the amount deducted for sales tax.
The transaction includes:
Order reference number (clickable to view order details)
Amount deducted
Pending label if the transaction is not yet finalized
🚀 Pro Tip: Even though sales tax is deducted, you'll see a Order Payment transaction that reflects the full order value—tax is simply passed through to Homegrown in subsequent transactions.
Do I Receive Sales Tax Reports?
No, since Homegrown handles all tax filings and payments, you do not receive reports of tax collected.
The tax amounts are shown in your ledger for transparency only—no action is needed on your part.
Frequently Asked Questions
Is sales tax included in my payout?
No, sales tax is deducted before payout. You only receive funds from the sale minus tax, fees, and reserves.
Do I need to include Homegrown sales on my own tax returns?
For sales tax purposes, no—we handle all sales tax remittance. For income tax, you may need to report earnings (you’ll receive a 1099 if eligible).
Where can I see how much tax was collected?
Each Tax transaction in your ledger shows the amount deducted per order. There is no tax summary report at this time.
🧾 Fun Fact: Tax rules vary by location, but you don’t have to worry—our system calculates it automatically at checkout!
Next Steps
Want to know how service fees affect your earnings?
➡️ Service Fee Breakdown