> For the complete documentation index, see [llms.txt](https://docs.novamp.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.novamp.io/creators/taxes.md).

# Token Taxes

Optionally skim a percentage off every buy and sell and route it to wallets you choose.

{% hint style="warning" %}
Any non-zero tax makes your token a **fee-on-transfer token on Uniswap / PancakeSwap v2**, available on `🔵 Base` `🟡 BNB Chain` `⚪ Ethereum` only. `🟢 Robinhood Chain` is v3-only, so RHC tokens are always zero-fee.
{% endhint %}

## Overview

A transfer tax is **opt-in**. A token with 0% buy and 0% sell tax is a zero-fee `NovampToken` on **v3**. A token with any buy or sell tax is a fee-on-transfer `NovampTaxToken` on **v2**. Taxes are capped at launch and can only ever be **lowered** afterward — never raised.

## How it works

You set buy and sell rates independently at launch. The value you set is the **permanent ceiling**: the tax can be reduced later, but the on-chain contract rejects any attempt to raise it. The live rate is always readable on the token page, so traders always know the real cost of a trade.

## How to use it

### Rates

|              | Range    |
| ------------ | -------- |
| **Buy tax**  | 0% – 10% |
| **Sell tax** | 0% – 10% |

### Destinations

Choose where tax proceeds go. Pick one destination (it takes 100%) or split across several so the shares total 100%.

| Destination          | What happens                                                                                                       |
| -------------------- | ------------------------------------------------------------------------------------------------------------------ |
| **Creator wallet**   | Tax is sent to your connected wallet.                                                                              |
| **Community wallet** | Tax is sent to an address you enter (e.g. a treasury or multisig).                                                 |
| **Burn**             | Tax is sent to the dead address `0x000000000000000000000000000000000000dEaD`, permanently removing it from supply. |

## Important details

| Rule           | Detail                                                                             |
| -------------- | ---------------------------------------------------------------------------------- |
| Cap            | The launch-time rate is the maximum, forever                                       |
| Lowerable only | Reduce buy/sell tax anytime; **never** raise it (enforced on-chain)                |
| Always visible | The live buy/sell tax shows on the token page at all times                         |
| Splits         | Must total 100% across your chosen destinations                                    |
| Venue          | Any tax → v2; 0/0 → v3 (see [Liquidity & Pools](/creators/liquidity-and-pools.md)) |

### What's not included (v1)

To keep tax tokens predictable and safe, v1 deliberately excludes reflections, dynamic taxes (changing with price/time/volume), wallet-specific exemptions, arbitrary blacklists, and any transfer tax beyond the buy/sell tax.

### Novamp fee vs. token tax

Your token tax is **separate** from Novamp's protocol fee. Novamp charges a flat **1% swap fee** (50% creator / 50% protocol) on every trade regardless of token type. A tax token's buy/sell tax is **on top of that** and goes to your chosen destination. See the [Fee model](/protocol/fee-model.md).

## What happens next?

* The token trades on a v2 pair with your tax applied to every buy and sell.
* Tax proceeds accrue to your destinations automatically.
* You can lower the tax anytime to reward holders; you can never raise it.

## Troubleshooting

| Symptom                                      | Fix                                                                                                |
| -------------------------------------------- | -------------------------------------------------------------------------------------------------- |
| "Buy/sell tax is above the 10% maximum"      | Set each rate to 10% or less.                                                                      |
| "Tax destination splits must add up to 100%" | Adjust the shares so they total exactly 100%.                                                      |
| "Enter a valid community wallet address"     | Provide a valid address for the community destination.                                             |
| Tax token won't launch without liquidity     | v2 launches require opening liquidity — see [Liquidity & Pools](/creators/liquidity-and-pools.md). |

## Continue exploring

* [🌊 Liquidity & Pools](/creators/liquidity-and-pools.md)
* [🛡️ Anti-Sniper Protections](/creators/anti-snipe-and-protection.md)
* [💰 Fee Model](/protocol/fee-model.md)
* [🚀 Launch a Token](/creators/launching-a-token.md)


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