Toast Checking and the Sales Tax Smart Jar feature are in limited release and may not be available to all Toast customers. To check your eligibility, visit the Toast Checking page in Toast Web.
|
Sign Up for the Sales Tax Smart Jar
How do I sign up for a Sales Tax Smart Jar with Toast Checking?
Visit your Toast Checking dashboard and select the option to open a Sales Tax Smart Jar to learn more and get started. After signing up, you’ll receive an email from DAVO to complete your setup. You can also go to the Jars section in your Toast Checking dashboard, select Open a Jar, and then select Sales Tax Smart Jar as the Jar type.
How much does the Sales Tax Smart Jar cost?
The Sales Tax Smart Jar requires a subscription to DAVO, which costs $57.99 per month, per location. This fee is debited from your primary Toast Checking account on the first day of each month, so make sure you have enough funds in that account to pay for the subscription.
Does the Sales Tax Smart Jar work if I have different legal entities?
The Sales Tax Smart Jar will only collect for locations that are under a single legal entity. If you have multiple legal entities, you will need to open a new Toast Checking account and Sales Tax Smart Jar for each additional legal entity.
Can I choose which locations I want to use for my Sales Tax Smart Jar?
Yes — when opening your Sales Tax Smart Jar, you will be able to see the locations tied to your legal entity and can select which locations you’d like to enable the DAVO subscription for.
I already use DAVO. Can I start using a Sales Tax Smart Jar with Toast Checking?
You’ll need to first cancel your existing DAVO account subscription before opening a Sales Tax Smart Jar, which will have a new DAVO subscription when you open the account.
Sales Tax Smart Jar General FAQs
How does DAVO work with a Toast Checking account?
Your daily sales taxes are automatically collected and deposited into your Sales Tax Smart Jar thanks to DAVO’s integration with Toast. You’ll be able to see how much has been automatically set aside, and DAVO will file your taxes on-time and in-full, guaranteed.
I already use DAVO. Why is it better to use DAVO with the Toast Checking Sales Tax Smart Jar?
You’ll get even more benefit out of DAVO when using Toast Checking thanks to the Sales Tax Smart Jar. You can earn interest depending on the total balance in your Toast Checking accounts — including your Sales Tax Smart Jar! Plus, you’ll get added peace of mind by seeing exactly how much money has been automatically set aside for sales taxes.
What states offer on-time filing discounts for sales taxes?
Many states offer on-time filing discounts. DAVO has a helpful tool that you can view here.
What interest rate/APY does my Sales Tax Smart Jar earn?
You can earn interest on your total Toast Checking balance, which includes the amount held in your Sales Tax Smart Jar(s)! This is a great way to make some extra money while safely budgeting for your sales tax payments.
Interest rate of 1.49% and Annual Percentage Yield (APY) of 1.50% for accounts with total balances of $15,000 or more is effective as of 11/4/2025. You will not earn any interest or APY if the total balance across your accounts is less than $15,000. The interest rates and APYs are variable and may change at any time. Fees may affect earnings on the account.
Interest rate of 1.90% and Annual Percentage Yields (APY) of 1.92% for accounts with balances below $25,000, and interest rate of 2.10% and Annual Percentage Yield (APY) of 2.12% for accounts with balances $25,000 or higher, are effective as of 9/19/2025. The interest rates and APYs are variable and may change at any time. Fees may affect earnings on the account.
Can the Sales Tax Smart Jar handle my federal income taxes too?
No, the Sales Tax Smart Jar only handles your sales taxes. If you want to budget for income taxes, you could use Toast Checking to open a custom Jar with an Auto Savings percentage that is close to your typical income taxes as a percentage of your card sales.
How to Use the Sales Tax Smart Jar
When does the Sales Tax Smart Jar begin auto-saving for taxes? What if I opened it mid-month?
After signing up, the Sales Tax Smart Jar will begin automatically collecting for sales taxes on the first day of the next tax period.
How does using Toast’s Instant Deposit feature affect my Sales Tax Smart Jar?
Your sales taxes are automatically excluded from the available amount that you can access with Instant Deposit.
Does the Sales Tax Smart Jar only collect sales tax for debit and credit card sales?
No, the Sales Tax Smart Jar sets aside money for all sales — including cash and other payment methods — thanks to the integration with DAVO. However, the money used to automatically fund the Sales Tax Smart Jar comes from your daily card transactions processed through Toast.
Can I withdraw money from my Sales Tax Smart Jar?
You can transfer money out of your Sales Tax Smart Jar, but it is not recommended. Moving money out will likely result in insufficient funds to pay your next sales tax filing. In those cases, you will need to transfer money back into the account before your sales taxes can be filed.
What happens if my Sales Tax Smart Jar has insufficient funds to pay my sales taxes?
If your Sales Tax Smart Jar has insufficient funds, you’ll be notified on your Toast Checking dashboard and will also receive email notifications about the amount you’ll need to transfer to the Sales Tax Smart Jar immediately to ensure your on-time, in-full filing.
Why might my Sales Tax Smart Jar have insufficient funds to pay my sales taxes?
Certain factors may cause your Sales Tax Smart Jar to be short, such as payment processing service disruptions, if you move money out of the account, or other reasons. You will be notified of any amount that you need to transfer into the account prior to filing.
How do I know that DAVO has filed my sales tax on time and in full?
You will be notified by email when DAVO has completed your sales tax filing. You will receive a copy of your sales tax return as well as a time-stamped confirmation of payment.
Where do I get any on-time filing discounts for my Toast Sales Tax Jar?
If you’re eligible for on-time filing discounts, the amounts will be automatically credited to your Rewards Jar; if you do not have a Rewards Jar, it will be credited to your primary Toast Checking account instead.
Sales Tax Smart Jar Support
How do I cancel the DAVO subscription for the Sales Tax Smart Jar?
To cancel your DAVO subscription and close your Sales Tax Smart Jar:
Visit your Toast Checking dashboard and locate the Sales Tax Smart Jar under the Jars section
Select the dropdown button (⋁) and then select the three dots ( ፧ ) to open the Jars options menu
Select “Close Jar” for the location(s) you wish to stop using the Sales Tax Smart Jar for. You will need to repeat the process for each location listed underneath the Sales Tax Smart Jar because each location has its own account.
You will be presented with options for when you would want to close the Sales Tax Smart Jar:
Close the Sales Tax Smart Jar after this period: it will continue to collect and automatically file for this period, and then your Sales Tax Smart Jar will be closed, and the DAVO subscription will be cancelled.
Close the Sales Tax Smart Jar now: your Sales Tax Smart Jar will immediately stop collecting and filing — the funds will be immediately moved to your core Toast Checking account.
If you close your Sales Tax Smart Jar, you can open your own Jar for sales tax and set an approximate percentage to automatically budget with Toast Checking! Creating custom Jars is free.
Where do I go to for support for my Sales Tax Smart Jar?
For questions about Toast Checking and the Sales Tax Smart Jar, please email us at toastchecking@toasttab.com. To view general Toast Checking FAQs, visit this link.
For questions about DAVO, please contact DAVO directly using this link: https://www.davosalestax.com/support/#hs-chat-open
Additional Resources
*Toast is not an FDIC-insured bank. Banking services provided by Thread Bank; Member FDIC. The Toast Checking Account Debit Mastercard is issued by Thread Bank pursuant to a license from Mastercard Inc. and may be used anywhere Mastercard is accepted. FDIC Insurance available for funds on deposit through Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
Access to DAVO is offered by Toast; Thread Bank is not associated with DAVO or any services offered through DAVO.
**Subject to conditions and limitations. Learn more here: https://legal.avalara.com/product-terms#davoguarantee
***If you opened your first account on or after March 3, 2025: Interest rate of 1.49% and Annual Percentage Yield (APY) of 1.50% for accounts with total balances of $15,000 or more is effective as of 11/4/2025. You will not earn any interest or APY if the total balance across your accounts is less than $15,000. The interest rates and APYs are variable and may change at any time. Fees may affect earnings on the account.
If you opened your first account before March 3, 2025: Interest rate of 1.90% and Annual Percentage Yields (APY) of 1.92% for accounts with balances below $25,000, and interest rate of 2.10% and Annual Percentage Yield (APY) of 2.12% for accounts with balances $25,000 or higher, are effective as of 11/4/2025. The interest rates and APYs are variable and may change at any time. Fees may affect earnings on the account.