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Progressive Tax Collection: Choosing When Tax Is Collected on Deposits

How to control whether tax is collected gradually across each payment or all at once on the final balance.

When clients pay for a trip in installments — a deposit now, the balance later — you can choose how tax is collected across those payments. Progressive tax collection spreads tax proportionally across each payment instead of collecting it all on the final balance.


The Two Modes

Standard (default): Tax collected at full payment

Tax is collected once the client has paid in full. On a deposit-and-balance split, the deposit carries no tax, and the full tax amount is applied to the final balance payment.

Progressive: Tax collected with each payment

Tax is collected gradually, in step with each payment the client makes. Each installment carries a proportional share of the total tax, based on how much of the trip total that payment represents.

Either way, the client pays the same total tax — the difference is when it's collected.

Example: For a $1,000 trip with 10% tax ($100 total) and a 50% deposit:

Mode

Deposit tax

Balance tax

Standard

$0

$100

Progressive

$50

$50


How refunds work in progressive mode

Refunds are handled proportionally. If a client paid $50 in tax on a $500 payment and you issue a $200 refund, $20 of tax is returned — the system recalculates the tax actually owed on the reduced amount and refunds the difference. Tax always stays matched to what the client owes.

🟢 Want to collect tax progressively? This is enabled on a per-account basis. Reach out to the Brindlechute team and we'll switch it on for you.

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