Tax Flag (T, N, X)

Tax flags are single-letter codes printed next to or alongside each line item, indicating how the POS treats that item for tax purposes. Walmart, Target, and many big-box retailers use this convention.

The standard codes: T (Taxable, full rate), N (Non-taxable, e.g., most groceries in tax-free states), X (Tax-Exempt, e.g., medical/prescription items). Some retailers add A or B for alternate tax brackets.

These flags directly drive the multi-line tax calculation at the bottom. On a Walmart receipt with mixed grocery + general merchandise, you’ll see "TAX 1" sum the T-flagged items at one rate and "TAX 2" sum the N-flagged items at a different (often zero) rate.

When designing a receipt, include the right tax flags for the right items — prescriptions should be X, fresh produce in most states should be N, electronics and clothing should be T. Mismatched flags are an instant authenticity problem.