# Tax Settings

**Menu Prompt: 💰 Tax Settings**

**Detailed Instructions:**

* Set a tax percentage that will apply to both buy and sell transactions.
* Enter a number between 0 and 5, representing the percentage.&#x20;
* This tax will be deducted from each transaction and can be used for:&#x20;
  * Project development funds
  * Marketing efforts
  * Liquidity provision
  * Redistribution to holders
* Consider the impact on trading:&#x20;
  * Higher taxes may discourage frequent trading but generate more funds for the project.
  * Lower taxes may encourage more trading activity and liquidity.

**Example: Entering "2" sets a 2% tax on both buying and selling transactions. (See our PRO version for the ability to set different sales/buy, initial, transactions changes in taxes)**

<figure><img src="/files/S9tjMO3YTTORsMMUFst9" alt=""><figcaption></figcaption></figure>


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