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Automatic Taxes for Payment Links

Automatic Taxes calculates and applies the correct U.S. sales tax on Payment Links based on the customer’s address.

Updated over 2 months ago

Who This Is For / When to Use

This article is for Kyrios users who:

  • Sell taxable products or services in the United States

  • Use Payment Links to collect payments

  • Need taxes calculated automatically by customer location

  • Want to reduce manual tax errors and compliance risk

How Automatic Taxes Work in Kyrios

Automatic Taxes uses the customer’s address to calculate applicable taxes at checkout.

  • Taxes are calculated using:

    • State

    • City

    • Local tax rules (where applicable)

  • Taxes apply only when customer address data is collected

  • Automatic Taxes currently support U.S. transactions only

Enable Automatic Taxes

Step 1: Open Tax Settings

  1. In the left menu, click Payments

  2. Select Settings

  3. Click Taxes

Step 2: Turn On Automatic Taxes

  1. Toggle Automatic Taxes ON

  2. Select the Global Tax Category that matches your product or service

  3. Save your changes

Automatic Taxes can calculate and apply state-level and local taxes automatically once enabled.

Step 3: Configure State Nexus

  1. In Taxes, select the U.S. states where you collect tax

  2. Save your selections

Important notes:

  • Nexus locations can be added in bulk

  • Nexus locations must be deleted one at a time

Configure Payment Links for Tax Calculation

Automatic Taxes only apply if the Payment Link is configured correctly.

Step 1: Create or Edit a Payment Link

  1. Go to Payment Links

  2. Click Create Payment Link or

  3. Click the three-dot menu on an existing link and select Edit

Step 2: Require Customer Address

In the Payment Link editor:

  • Ensure Customer Address Collection is enabled

  • Address collection is required for tax calculation

Without state and postcode data, taxes cannot be calculated.

Step 3: Preview and Test

  1. Click Preview

  2. Enter a test address (state and postcode)

  3. Confirm tax appears correctly on the total

Step 4: Save the Payment Link

Once confirmed, save the Payment Link.


Taxes will now apply automatically during checkout.

Key Features and Benefits

Automatic Calculation

  • Calculates tax by customer location

  • Applies state, city, and applicable local taxes

  • No manual math required

Seamless Payment Link Integration

  • Works automatically with Payment Links

  • Ideal for online, phone, or manual payment scenarios

Configuration Flexibility

  • Set a global tax category

  • Choose specific states where taxes apply

Compliance Support

  • Reduces tax errors

  • Helps maintain U.S. sales tax compliance

Time Savings

  • No manual tax entry

  • Faster checkout and fewer mistakes

Common Issues and Fixes

Taxes Are Not Appearing

Cause: Customer address is not collected
Fix: Enable address collection on the Payment Link

Incorrect Tax Amount

Cause: Wrong state or postcode entered
Fix: Verify customer address details during checkout

Taxes Not Applying to a State

Cause: State not selected in tax settings
Fix: Add the state in Payments → Settings → Taxes

FAQ

Why is my Payment Link not calculating taxes?

Taxes require the customer’s state and postcode.
If address collection is disabled, taxes cannot be calculated.

Can Automatic Taxes be used outside the U.S.?

No.
Automatic Taxes currently support U.S. transactions only.
International taxes must be added manually.

What happens if Automatic Taxes are not enabled?

Taxes must be calculated and added manually to each transaction.

How does Kyrios handle multiple state tax rates?

Kyrios automatically applies the correct tax rate based on the customer’s address and your configured states.

Can I override automatic tax calculations?

Yes.
Taxes can be adjusted manually within the Payment Link editor if required.

Can tax categories or state settings be updated later?

Yes.
You can update global tax categories and state selections at any time.

Can multiple nexus locations be deleted at once?

No.
Nexus locations can be added in bulk, but deletions must be done individually.

SOP Recommendation

For teams processing payments regularly:

  • Add Payment Link testing to your standard checkout SOP

  • Verify tax calculation before sending links to customers

  • Review state nexus settings quarterly

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