Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.
Overview
Tax tokens implement transaction fees (taxes) on buys, sells, or transfers. While some taxes are legitimate (funding development, marketing, or liquidity), malicious tokens use extreme or hidden taxes to steal from traders.
Always check a token’s buy and sell taxes before trading. Taxes can be modified at any time by malicious owners.
How Tax Tokens Work
Tax Implementation: Contract includes fee logic on transfers
Fee Collection: Percentage taken on each buy/sell/transfer
Distribution: Fees go to designated wallets or contracts
Legitimate Use: Fund development, marketing, burns, reflections
Malicious Use: Drain trader funds through excessive fees
Types of Token Taxes
Buy Tax
Fee charged when purchasing the token
Typically ranges from 0-10% for legitimate tokens
Malicious tokens may have hidden or extreme buy taxes
Sell Tax
Fee charged when selling the token
Often higher than buy tax in legitimate tokens
Extreme sell taxes can trap funds (soft honeypot)
Transfer Tax
Fee on wallet-to-wallet transfers
Can prevent normal token movement
Often used to trap funds
Dynamic Tax
Tax rates that change based on conditions
Can start low and increase dramatically
Often used in “stealth” scams
Detection Indicators
Tag
Severity
Description
high_buy_tax
High
Buy tax exceeds normal range
high_sell_tax
High
Sell tax exceeds normal range
modifiable_tax
Medium
Owner can change tax rates
hidden_tax
Critical
Undisclosed fees in contract
tax_can_exceed_threshold
High
Tax can be set extremely high
Tax Thresholds
Tax Range
Risk Level
Notes
0-5%
Low
Standard range for most tokens
5-10%
Medium
Higher but can be legitimate
10-20%
High
Unusual, verify project legitimacy
20%+
Critical
Likely scam or soft honeypot
API Example
curl -X GET "https://api.webacy.com/tokens/0x123...?chain=eth" \ -H "x-api-key: YOUR_API_KEY"
{"docsConfig":{"theme":"mint","$schema":"https://mintlify.com/docs.json","name":"Webacy Docs","colors":{"primary":"#00d66f","light":"#33cb8b","dark":"#279b71"},"logo":{"light":"https://mintcdn.com/webacy/PZHkbk8qJrPsQSaC/logo/light.png?fit=max\u0026auto=format\u0026n=PZHkbk8qJrPsQSaC\u0026q=85\u0026s=c1933879883f6b01ff46a6e51cfd687f","dark":"https://mintcdn.com/webacy/cDgYsLUzSZsNJNEk/logo/dark.svg?fit=max\u0026auto=format\u0026n=cDgYsLUzSZsNJNEk\u0026q=85\u0026s=e8da7717da0f291d63cc90a4cb4a91af"},"favicon":"https://mintcdn.com/webacy/LaWycqKCQaZgOW1n/favicon.ico?fit=max\u0026auto=format\u0026n=LaWycqKCQaZgOW1n\u0026q=85\u0026s=2a29ac070865d3fb96939b7c595406f9","api":{},"navbar":{"primary":{"type":"button","label":"Dashboard","href":"https://dapp.webacy.com"}},"footer":{"socials":{"x":"https://x.com/mywebacy","github":"https://github.com/Webacy-Prod"}},"contextual":{"options":["copy","claude","chatgpt","cursor"],"display":"header"},"styling":{"latex":false},"navigation":{"pages":[]}},"deployment":{"deploymentMetadataValue":{"subdomain":"webacy","hasAudioNarration":false,"actualSubdomain":"webacy","customDomains":["docs.webacy.com"],"gitSource":{"type":"github","owner":"webacy-prod","repo":"mintlify-docs","deployBranch":"main","contentDirectory":"","isPrivate":true,"mountPath":"","label":""},"entitlements":{"AI_CHAT":{"status":"ENABLED"},"WEB_MCP":{"status":"ENABLED"},"NARRATION":{"status":"ENABLED"}},"buildId":"6af62704872f0a825f98c69f","clientVersion":"0.0.4128","searchFilterCounts":[{"language":"default","tag":"Build","count":61},{"language":"default","tag":"API Reference","count":49},{"language":"default","tag":"Overview","count":29},{"language":"default","tag":"Glossary","count":25},{"language":"default","tag":"Risk Intelligence","count":21},{"language":"default","tag":"Learn","count":18},{"language":"default","tag":"Integrations","count":15},{"language":"default","tag":"Stablecoins","count":11},{"language":"default","tag":"Contract Security","count":9},{"language":"default","tag":"SDK","count":8}]},"assistantConfig":{"enableAskAiButton":false,"enableStarterQuestions":false,"enableAskAiSearchBar":true},"basePath":"","hasChatPermissions":true,"hasWebMcpPermissions":true,"toggles":[],"googleFontsInlined":false},"customCss":[{"filePath":"style.css","content":".gb{display:inline-block;min-width:2.2em;padding:2px 9px;border-radius:6px;font-weight:700;font-size:0.85em;line-height:1.35;text-align:center;letter-spacing:0.02em;white-space:nowrap}.gb-a{background:#047857;color:#ffffff}.gb-b{background:#1d4ed8;color:#ffffff}.gb-c{background:#f59e0b;color:#1f2937}.gb-d{background:#c2410c;color:#ffffff}.gb-f{background:#b91c1c;color:#ffffff}"}],"page":{"pagePath":"glossary/tax-tokens","slug":"/glossary/tax-tokens","pageMetadata":{"title":"Tax Tokens","description":"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.","public":true,"href":"/glossary/tax-tokens"},"description":{"compiledSource":"\"use strict\";\nconst {jsx: _jsx} = arguments[0];\nconst {useMDXComponents: _provideComponents} = arguments[0];\nfunction _createMdxContent(props) {\n const _components = {\n p: \"p\",\n ..._provideComponents(),\n ...props.components\n };\n return _jsx(_components.p, {\n children: \"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\"\n });\n}\nfunction MDXContent(props = {}) {\n const {wrapper: MDXLayout} = {\n ..._provideComponents(),\n ...props.components\n };\n return MDXLayout ? _jsx(MDXLayout, {\n ...props,\n children: _jsx(_createMdxContent, {\n ...props\n })\n }) : _createMdxContent(props);\n}\nreturn {\n default: MDXContent\n};\n","frontmatter":{},"scope":{}},"pageType":"default","mdx":{"mdxSource":{"compiledSource":"\"use strict\";const{Fragment:_Fragment,jsx:_jsx,jsxs:_jsxs}=arguments[0];const{useMDXComponents:_provideComponents}=arguments[0];function _createMdxContent(props){const _components={a:`a`,code:`code`,li:`li`,ol:`ol`,p:`p`,pre:`pre`,span:`span`,strong:`strong`,tbody:`tbody`,td:`td`,th:`th`,thead:`thead`,tr:`tr`,ul:`ul`,..._provideComponents(),...props.components},{CodeBlock,Heading,Table,Warning}=_components;if(!CodeBlock)_missingMdxReference(`CodeBlock`,true);if(!Heading)_missingMdxReference(`Heading`,true);if(!Table)_missingMdxReference(`Table`,true);if(!Warning)_missingMdxReference(`Warning`,true);return _jsxs(_Fragment,{children:[_jsx(Heading,{level:`2`,id:`overview`,children:`Overview`}),`\n`,_jsxs(_components.p,{children:[_jsx(_components.strong,{children:`Tax tokens`}),` implement transaction fees (taxes) on buys, sells, or transfers. While some taxes are legitimate (funding development, marketing, or liquidity), malicious tokens use extreme or hidden taxes to steal from traders.`]}),`\n`,_jsx(Warning,{children:_jsx(_components.p,{children:`Always check a token’s buy and sell taxes before trading. Taxes can be modified at any time by malicious owners.`})}),`\n`,_jsx(Heading,{level:`2`,id:`how-tax-tokens-work`,children:`How Tax Tokens Work`}),`\n`,_jsxs(_components.ol,{children:[`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Tax Implementation`}),`: Contract includes fee logic on transfers`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Fee Collection`}),`: Percentage taken on each buy/sell/transfer`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Distribution`}),`: Fees go to designated wallets or contracts`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Legitimate Use`}),`: Fund development, marketing, burns, reflections`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Malicious Use`}),`: Drain trader funds through excessive fees`]}),`\n`]}),`\n`,_jsx(Heading,{level:`2`,id:`types-of-token-taxes`,children:`Types of Token Taxes`}),`\n`,_jsx(Heading,{level:`3`,id:`buy-tax`,children:`Buy Tax`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Fee charged when purchasing the token`}),`\n`,_jsx(_components.li,{children:`Typically ranges from 0-10% for legitimate tokens`}),`\n`,_jsx(_components.li,{children:`Malicious tokens may have hidden or extreme buy taxes`}),`\n`]}),`\n`,_jsx(Heading,{level:`3`,id:`sell-tax`,children:`Sell Tax`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Fee charged when selling the token`}),`\n`,_jsx(_components.li,{children:`Often higher than buy tax in legitimate tokens`}),`\n`,_jsx(_components.li,{children:`Extreme sell taxes can trap funds (soft honeypot)`}),`\n`]}),`\n`,_jsx(Heading,{level:`3`,id:`transfer-tax`,children:`Transfer Tax`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Fee on wallet-to-wallet transfers`}),`\n`,_jsx(_components.li,{children:`Can prevent normal token movement`}),`\n`,_jsx(_components.li,{children:`Often used to trap funds`}),`\n`]}),`\n`,_jsx(Heading,{level:`3`,id:`dynamic-tax`,children:`Dynamic Tax`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Tax rates that change based on conditions`}),`\n`,_jsx(_components.li,{children:`Can start low and increase dramatically`}),`\n`,_jsx(_components.li,{children:`Often used in “stealth” scams`}),`\n`]}),`\n`,_jsx(Heading,{level:`2`,id:`detection-indicators`,children:`Detection Indicators`}),`\n`,_jsxs(Table,{children:[_jsx(_components.thead,{children:_jsxs(_components.tr,{children:[_jsx(_components.th,{children:`Tag`}),_jsx(_components.th,{children:`Severity`}),_jsx(_components.th,{children:`Description`})]})}),_jsxs(_components.tbody,{children:[_jsxs(_components.tr,{children:[_jsx(_components.td,{children:_jsx(_components.code,{children:`high_buy_tax`})}),_jsx(_components.td,{children:`High`}),_jsx(_components.td,{children:`Buy tax exceeds normal range`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{children:_jsx(_components.code,{children:`high_sell_tax`})}),_jsx(_components.td,{children:`High`}),_jsx(_components.td,{children:`Sell tax exceeds normal range`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{children:_jsx(_components.code,{children:`modifiable_tax`})}),_jsx(_components.td,{children:`Medium`}),_jsx(_components.td,{children:`Owner can change tax rates`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{children:_jsx(_components.code,{children:`hidden_tax`})}),_jsx(_components.td,{children:`Critical`}),_jsx(_components.td,{children:`Undisclosed fees in contract`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{children:_jsx(_components.code,{children:`tax_can_exceed_threshold`})}),_jsx(_components.td,{children:`High`}),_jsx(_components.td,{children:`Tax can be set extremely high`})]})]})]}),`\n`,_jsx(Heading,{level:`2`,id:`tax-thresholds`,children:`Tax Thresholds`}),`\n`,_jsxs(Table,{children:[_jsx(_components.thead,{children:_jsxs(_components.tr,{children:[_jsx(_components.th,{children:`Tax Range`}),_jsx(_components.th,{children:`Risk Level`}),_jsx(_components.th,{children:`Notes`})]})}),_jsxs(_components.tbody,{children:[_jsxs(_components.tr,{children:[_jsx(_components.td,{\"data-numeric\":`true`,children:`0-5%`}),_jsx(_components.td,{children:`Low`}),_jsx(_components.td,{children:`Standard range for most tokens`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{\"data-numeric\":`true`,children:`5-10%`}),_jsx(_components.td,{children:`Medium`}),_jsx(_components.td,{children:`Higher but can be legitimate`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{\"data-numeric\":`true`,children:`10-20%`}),_jsx(_components.td,{children:`High`}),_jsx(_components.td,{children:`Unusual, verify project legitimacy`})]}),_jsxs(_components.tr,{children:[_jsx(_components.td,{\"data-numeric\":`true`,children:`20%+`}),_jsx(_components.td,{children:`Critical`}),_jsx(_components.td,{children:`Likely scam or soft honeypot`})]})]})]}),`\n`,_jsx(Heading,{level:`2`,id:`api-example`,children:`API Example`}),`\n`,_jsx(CodeBlock,{filename:``,numberOfLines:`2`,language:`shellscript`,children:_jsx(_components.pre,{className:`shiki shiki-themes github-light-default dark-plus`,style:{backgroundColor:`#ffffff`,\"--shiki-dark-bg\":`#0B0C0E`,color:`#1f2328`,\"--shiki-dark\":`#D4D4D4`},language:`shellscript`,children:_jsxs(_components.code,{language:`shellscript`,numberOfLines:`2`,children:[_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#953800`,\"--shiki-dark\":`#DCDCAA`},children:`curl`}),_jsx(_components.span,{style:{color:`#0550AE`,\"--shiki-dark\":`#569CD6`},children:` -X`}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:` GET`}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:` \"https://api.webacy.com/tokens/0x123...?chain=eth\"`}),_jsx(_components.span,{style:{color:`#CF222E`,\"--shiki-dark\":`#D7BA7D`},children:` \\\\`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#0550AE`,\"--shiki-dark\":`#569CD6`},children:` -H`}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:` \"x-api-key: YOUR_API_KEY\"`})]}),`\n`]})})}),`\n`,_jsx(_components.p,{children:`Response showing tax risks:`}),`\n`,_jsx(CodeBlock,{filename:``,numberOfLines:`15`,language:`json`,children:_jsx(_components.pre,{className:`shiki shiki-themes github-light-default dark-plus`,style:{backgroundColor:`#ffffff`,\"--shiki-dark-bg\":`#0B0C0E`,color:`#1f2328`,\"--shiki-dark\":`#D4D4D4`},language:`json`,children:_jsxs(_components.code,{language:`json`,numberOfLines:`15`,children:[_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`{`})}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"overallRisk\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0550AE`,\"--shiki-dark\":`#B5CEA8`},children:`75.0`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`,`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"issues\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: [`})]}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:` {`})}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"tag\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"high_sell_tax\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`,`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"severity\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"high\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`,`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"description\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"Sell tax of 25% detected\"`})]}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:` },`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:` {`})}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"tag\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"modifiable_tax\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`,`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"severity\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"medium\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`,`})]}),`\n`,_jsxs(_components.span,{className:`line`,children:[_jsx(_components.span,{style:{color:`#116329`,\"--shiki-dark\":`#9CDCFE`},children:` \"description\"`}),_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`: `}),_jsx(_components.span,{style:{color:`#0A3069`,\"--shiki-dark\":`#CE9178`},children:`\"Owner can modify tax rates\"`})]}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:` }`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:` ]`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{style:{color:`#1F2328`,\"--shiki-dark\":`#D4D4D4`},children:`}`})}),`\n`]})})}),`\n`,_jsx(Heading,{level:`2`,id:`red-flags`,children:`Red Flags`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Asymmetric taxes`}),` - Low buy tax, high sell tax (soft honeypot)`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Modifiable taxes`}),` - Owner can change rates after launch`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Hidden taxes`}),` - Fees not mentioned in documentation`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Increasing taxes`}),` - Rates go up over time`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Transfer taxes`}),` - Unusual for legitimate tokens`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Complex fee structures`}),` - Multiple or stacking fees`]}),`\n`]}),`\n`,_jsx(Heading,{level:`2`,id:`tax-manipulation-tactics`,children:`Tax Manipulation Tactics`}),`\n`,_jsx(Heading,{level:`3`,id:`bait-and-switch`,children:`Bait and Switch`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Launch with 0% tax to attract buyers`}),`\n`,_jsx(_components.li,{children:`Increase taxes after significant volume`}),`\n`,_jsx(_components.li,{children:`Trap existing holders with high sell fees`}),`\n`]}),`\n`,_jsx(Heading,{level:`3`,id:`stealth-increase`,children:`Stealth Increase`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Gradual tax increases over time`}),`\n`,_jsx(_components.li,{children:`Each increase seems small`}),`\n`,_jsx(_components.li,{children:`Cumulative effect traps funds`}),`\n`]}),`\n`,_jsx(Heading,{level:`3`,id:`conditional-taxes`,children:`Conditional Taxes`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsx(_components.li,{children:`Different rates for different wallets`}),`\n`,_jsx(_components.li,{children:`Insiders exempt from taxes`}),`\n`,_jsx(_components.li,{children:`Regular users pay full fees`}),`\n`]}),`\n`,_jsx(Heading,{level:`2`,id:`protection-strategies`,children:`Protection Strategies`}),`\n`,_jsxs(_components.ol,{children:[`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Check current taxes`}),` - Verify buy and sell rates before trading`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Review tax modifiability`}),` - Can owner change rates?`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Monitor for changes`}),` - Watch for tax updates post-purchase`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Read the contract`}),` - Look for hidden fee mechanisms`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Start small`}),` - Test with small amounts first`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.strong,{children:`Set slippage carefully`}),` - Account for taxes in slippage settings`]}),`\n`]}),`\n`,_jsx(Heading,{level:`2`,id:`calculating-actual-costs`,children:`Calculating Actual Costs`}),`\n`,_jsx(_components.p,{children:`When trading tax tokens:`}),`\n`,_jsx(CodeBlock,{filename:``,numberOfLines:`7`,language:`text`,children:_jsx(_components.pre,{className:`shiki shiki-themes github-light-default dark-plus`,style:{backgroundColor:`#ffffff`,\"--shiki-dark-bg\":`#0B0C0E`,color:`#1f2328`,\"--shiki-dark\":`#D4D4D4`},language:`text`,children:_jsxs(_components.code,{language:`text`,numberOfLines:`7`,children:[_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{children:`Actual received = Amount × (1 - buy_tax) × (1 - sell_tax)`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{children:`Example: 10% buy tax, 15% sell tax`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{children:`$100 purchase → $90 after buy tax`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{children:`$90 sell → $76.50 after sell tax`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{children:`Total loss: $23.50 (23.5%)`})}),`\n`,_jsx(_components.span,{className:`line`,children:_jsx(_components.span,{})})]})})}),`\n`,_jsx(Heading,{level:`2`,id:`related-concepts`,children:`Related Concepts`}),`\n`,_jsxs(_components.ul,{children:[`\n`,_jsxs(_components.li,{children:[_jsx(_components.a,{href:`/glossary/honeypots`,children:`Honeypots`}),` - Tokens that prevent selling entirely`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.a,{href:`/glossary/rug-pulls`,children:`Rug Pulls`}),` - Complete liquidity removal`]}),`\n`,_jsxs(_components.li,{children:[_jsx(_components.a,{href:`/glossary/hidden-balance-update`,children:`Hidden Balance Update`}),` - Manipulated balances`]}),`\n`]})]})}function MDXContent(props={}){const{wrapper:MDXLayout}={..._provideComponents(),...props.components};return MDXLayout?_jsx(MDXLayout,{...props,children:_jsx(_createMdxContent,{...props})}):_createMdxContent(props)}return{default:MDXContent};function _missingMdxReference(id,component){throw new Error(`Expected `+(component?`component`:`object`)+\" `\"+id+\"` to be defined: you likely forgot to import, pass, or provide it.\")}","frontmatter":{},"scope":{"config":{},"pageMetadata":{"title":"Tax Tokens","description":"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.","public":true,"href":"/glossary/tax-tokens"}}},"mdxSourceWithNoJs":null},"mdxExtracts":{"tableOfContents":[{"title":"Overview","slug":"overview","depth":2,"children":[]},{"title":"How Tax Tokens Work","slug":"how-tax-tokens-work","depth":2,"children":[]},{"title":"Types of Token Taxes","slug":"types-of-token-taxes","depth":2,"children":[{"title":"Buy Tax","slug":"buy-tax","depth":3,"children":[]},{"title":"Sell Tax","slug":"sell-tax","depth":3,"children":[]},{"title":"Transfer Tax","slug":"transfer-tax","depth":3,"children":[]},{"title":"Dynamic Tax","slug":"dynamic-tax","depth":3,"children":[]}]},{"title":"Detection Indicators","slug":"detection-indicators","depth":2,"children":[]},{"title":"Tax Thresholds","slug":"tax-thresholds","depth":2,"children":[]},{"title":"API Example","slug":"api-example","depth":2,"children":[]},{"title":"Red Flags","slug":"red-flags","depth":2,"children":[]},{"title":"Tax Manipulation Tactics","slug":"tax-manipulation-tactics","depth":2,"children":[{"title":"Bait and Switch","slug":"bait-and-switch","depth":3,"children":[]},{"title":"Stealth Increase","slug":"stealth-increase","depth":3,"children":[]},{"title":"Conditional Taxes","slug":"conditional-taxes","depth":3,"children":[]}]},{"title":"Protection Strategies","slug":"protection-strategies","depth":2,"children":[]},{"title":"Calculating Actual Costs","slug":"calculating-actual-costs","depth":2,"children":[]},{"title":"Related Concepts","slug":"related-concepts","depth":2,"children":[]}],"codeExamples":{}},"jsLinks":[],"subdomain":"webacy","siteName":"Webacy Docs","title":"Tax Tokens - Webacy Docs","navMaps":{"firstHrefInVersion":{},"firstHrefInLanguage":{}},"lastModified":"2026-11-12T17:16:09.015Z","originalFileLocation":"glossary/tax-tokens.mdx"},"headHtml":"\u003cscript data-mint-head>(function(){var d=document.documentElement,p=null;if(!p){try{p=localStorage.getItem(\"isDarkMode\")}catch(e){}if(p==='true')p='dark';else if(p==='false')p='light';if(p!=='light'\u0026\u0026p!=='dark'\u0026\u0026p!=='system')p=\"system\"}var r=p==='system'?(matchMedia(\"(prefers-color-scheme: dark)\").matches?'dark':'light'):p;d.classList.remove(r==='dark'?'light':'dark');d.classList.add(r);d.setAttribute(\"data-theme-preference\",p)})();\u003c/script>\u003cmeta data-mint-head name=\"description\" content=\"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\">\u003cmeta data-mint-head name=\"application-name\" content=\"Webacy Docs\">\u003cmeta data-mint-head name=\"generator\" content=\"Mintlify\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"192x192\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/android-chrome-192x192.png\" media=\"(prefers-color-scheme: light)\">\u003clink data-mint-head rel=\"apple-touch-icon\" type=\"image/png\" sizes=\"180x180\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/apple-touch-icon.png\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"16x16\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/favicon-16x16.png\" media=\"(prefers-color-scheme: light)\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"32x32\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/favicon-32x32.png\" media=\"(prefers-color-scheme: light)\">\u003clink data-mint-head rel=\"shortcut icon\" type=\"image/x-icon\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/favicon.ico\" media=\"(prefers-color-scheme: light)\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"192x192\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon-dark/android-chrome-192x192.png\" media=\"(prefers-color-scheme: dark)\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"16x16\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon-dark/favicon-16x16.png\" media=\"(prefers-color-scheme: dark)\">\u003clink data-mint-head rel=\"icon\" type=\"image/png\" sizes=\"32x32\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon-dark/favicon-32x32.png\" media=\"(prefers-color-scheme: dark)\">\u003clink data-mint-head rel=\"shortcut icon\" type=\"image/x-icon\" href=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon-dark/favicon.ico\" media=\"(prefers-color-scheme: dark)\">\u003cmeta data-mint-head property=\"og:title\" content=\"Tax Tokens - Webacy Docs\">\u003cmeta data-mint-head property=\"og:description\" content=\"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\">\u003cmeta data-mint-head property=\"og:site_name\" content=\"Webacy Docs\">\u003cmeta data-mint-head property=\"og:url\" content=\"https://docs.webacy.com/glossary/tax-tokens\">\u003cmeta data-mint-head property=\"og:type\" content=\"website\">\u003cmeta data-mint-head property=\"og:image\" content=\"https://webacy.mintlify.site/_mintlify/api/og/v2?division=Asset+Security\u0026amp;title=Tax+Tokens\u0026amp;description=Learn+how+tax+tokens+use+buy%2C+sell%2C+and+transfer+fees%2C+when+transaction+taxes+are+legitimate%2C+and+how+malicious+owners+exploit+hidden+fee+mechanisms.\u0026amp;theme=256fd323fde43a5eeef07bf6\u0026amp;signature=c51f609f1f0f9d2f69f163aaca2b9273ed96f1a9ff7602ec8fedc189b1401eb7\">\u003cmeta data-mint-head property=\"og:image:width\" content=\"1200\">\u003cmeta data-mint-head property=\"og:image:height\" content=\"630\">\u003cmeta data-mint-head name=\"twitter:card\" content=\"summary_large_image\">\u003cmeta data-mint-head name=\"twitter:title\" content=\"Tax Tokens - Webacy Docs\">\u003cmeta data-mint-head name=\"twitter:description\" content=\"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\">\u003cmeta data-mint-head name=\"twitter:image\" content=\"https://webacy.mintlify.site/_mintlify/api/og/v2?division=Asset+Security\u0026amp;title=Tax+Tokens\u0026amp;description=Learn+how+tax+tokens+use+buy%2C+sell%2C+and+transfer+fees%2C+when+transaction+taxes+are+legitimate%2C+and+how+malicious+owners+exploit+hidden+fee+mechanisms.\u0026amp;theme=256fd323fde43a5eeef07bf6\u0026amp;signature=c51f609f1f0f9d2f69f163aaca2b9273ed96f1a9ff7602ec8fedc189b1401eb7\">\u003cmeta data-mint-head name=\"twitter:image:width\" content=\"1200\">\u003cmeta data-mint-head name=\"twitter:image:height\" content=\"630\">\u003cmeta data-mint-head name=\"msapplication-config\" content=\"/mintlify-assets/_mintlify/favicons/webacy/BDwg8pUd_cx6RnJh/_generated/favicon/browserconfig.xml\">\u003cmeta data-mint-head name=\"apple-mobile-web-app-title\" content=\"Webacy Docs\">\u003cmeta data-mint-head name=\"msapplication-TileColor\" content=\"#00d66f\">\u003clink data-mint-head rel=\"canonical\" href=\"https://docs.webacy.com/glossary/tax-tokens\">\u003clink data-mint-head rel=\"alternate\" type=\"application/xml\" href=\"/sitemap.xml\">\u003clink data-mint-head rel=\"alternate\" type=\"text/markdown\" href=\"/glossary/tax-tokens.md\">\u003cscript data-mint-head type=\"application/ld+json\">{\"@context\":\"https://schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https://docs.webacy.com/#organization\",\"name\":\"Webacy Docs\",\"url\":\"https://docs.webacy.com\",\"logo\":{\"@type\":\"ImageObject\",\"url\":\"https://mintcdn.com/webacy/PZHkbk8qJrPsQSaC/logo/light.png?fit=max\u0026auto=format\u0026n=PZHkbk8qJrPsQSaC\u0026q=85\u0026s=c1933879883f6b01ff46a6e51cfd687f\"}},{\"@type\":\"WebSite\",\"@id\":\"https://docs.webacy.com#website\",\"name\":\"Webacy Docs\",\"url\":\"https://docs.webacy.com\",\"publisher\":{\"@id\":\"https://docs.webacy.com/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https://docs.webacy.com/glossary/tax-tokens#webpage\",\"url\":\"https://docs.webacy.com/glossary/tax-tokens\",\"name\":\"Tax Tokens\",\"description\":\"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\",\"dateModified\":\"2026-11-12T17:16:09.015Z\",\"isPartOf\":{\"@id\":\"https://docs.webacy.com#website\"},\"breadcrumb\":{\"@id\":\"https://docs.webacy.com/glossary/tax-tokens#breadcrumb\"}},{\"@type\":\"BreadcrumbList\",\"@id\":\"https://docs.webacy.com/glossary/tax-tokens#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Glossary\",\"item\":\"https://docs.webacy.com/glossary/definitions\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Asset Security\",\"item\":\"https://docs.webacy.com/glossary/honeypots\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Tax Tokens\",\"item\":\"https://docs.webacy.com/glossary/tax-tokens\"}]},{\"@type\":[\"Article\",\"TechArticle\"],\"@id\":\"https://docs.webacy.com/glossary/tax-tokens#article\",\"headline\":\"Tax Tokens\",\"name\":\"Tax Tokens\",\"description\":\"Learn how tax tokens use buy, sell, and transfer fees, when transaction taxes are legitimate, and how malicious owners exploit hidden fee mechanisms.\",\"url\":\"https://docs.webacy.com/glossary/tax-tokens\",\"mainEntityOfPage\":{\"@id\":\"https://docs.webacy.com/glossary/tax-tokens#webpage\"},\"dateModified\":\"2026-11-12T17:16:09.015Z\",\"publisher\":{\"@id\":\"https://docs.webacy.com/#organization\"},\"isPartOf\":{\"@id\":\"https://docs.webacy.com#website\"}}]}\u003c/script>\u003cscript data-mint-head type=\"application/ld+json\">{\"@context\":\"https://schema.org\",\"@type\":\"WebSite\",\"name\":\"Webacy Docs\",\"publisher\":{\"@type\":\"Organization\",\"name\":\"Webacy Docs\"},\"provider\":{\"@type\":\"Organization\",\"name\":\"Mintlify\",\"url\":\"https://mintlify.com\"}}\u003c/script>","agentPointerHref":"/glossary/tax-tokens.md","siteName":"Webacy Docs","nav":{"global":null,"tabs":[{"tab":"Overview","pages":[{"title":"Overview","href":"/introduction"}]},{"tab":"Build","groups":[{"group":"👋 Start Here","pages":[{"title":"Getting Started","href":"/getting-started"},{"title":"Get an API Key","href":"/get-an-api-key"},{"title":"Authentication","href":"/authentication"},{"title":"Rate Limits","href":"/rate-limits"},{"title":"Errors","href":"/errors"},{"title":"Example Addresses","href":"/example-addresses"}]},{"group":"Integrations","pages":[{"title":"API Considerations","href":"/essentials/considerations"},{"title":"x402 Payments","href":"/x402-payments"},{"group":"AI","pages":[{"title":"Build with AI","href":"/integrations/build-with-ai"},{"title":"Webacy API reference for AI coding agents","href":"/integrations/agent-reference"},{"title":"Webacy MCP Server for AI Coding Agents","href":"/integrations/mcp-server"}]},{"group":"SDK","pages":[{"title":"SDK Introduction","href":"/sdk/introduction"},{"title":"Webacy SDK Use Cases","href":"/sdk/use-cases"},{"title":"Installation","href":"/sdk/installation"},{"title":"Webacy SDK CLI Reference","href":"/sdk/cli"},{"title":"ThreatClient","href":"/sdk/threat-client"},{"title":"TradingClient","href":"/sdk/trading-client"},{"title":"Supported Chains in the Webacy SDK","href":"/sdk/chains"},{"title":"Error Handling","href":"/sdk/error-handling"}]},{"group":"Webhooks","pages":[{"title":"Webhook Alerts: real-time depeg and risk event delivery","href":"/essentials/webhooks"},{"title":"Webhook Alerts integration tutorial","href":"/essentials/webhooks-tutorial"}]}]},{"group":"Vaults","pages":[{"title":"Vault Risk Integration Guide","href":"/digital-assets/vault-risk"},{"title":"Vault Risk Intelligence","href":"/vault-risk-intelligence"},{"title":"Vault Yield \u0026 Fees","href":"/vault-yield-and-fees"},{"title":"On-Chain Dollar Rate","href":"/dollar-rate"},{"title":"Vault Ratings","href":"/vault-ratings"},{"title":"Screen and Monitor Vault Risk","href":"/digital-assets/vault-risk-screening"},{"title":"Vault Incidents","href":"/vault-incidents"}]},{"group":"Stablecoin \u0026 RWA","pages":[{"title":"Supply Flows","href":"/supply-flows"},{"title":"Backing Map","href":"/backing-map"},{"title":"Yield Scores: Safety-Weighted Ranking of Stablecoin Pools","href":"/yield-scores"},{"title":"Holder Concentration Index (HCI) Methodology","href":"/holder-concentration"},{"title":"Stablecoin Graveyard: Defunct and Depegged Tokens","href":"/graveyard"}]},{"group":"Depeg Monitor","pages":[{"title":"Depeg Monitor Scoring Methodology and Signals","href":"/scoring-methodology"},{"title":"Risk Rating","href":"/safety-grade"},{"title":"Peg Canary Score (PCS)","href":"/pcs"},{"title":"Depeg Monitor data dictionary","href":"/data-dictionary"},{"title":"Scoring Model \u0026 Methodology","href":"/scoring-model-and-methodology"}]},{"group":"Glossary","pages":[{"title":"Definitions","href":"/glossary/definitions"},{"title":"Label Types","href":"/glossary/label-types"},{"title":"Risk Assessment Modules","href":"/glossary/modules"},{"group":"FAQs","pages":[{"title":"Webacy Data Sources for Risk Ratings and Intelligence","href":"/data-sources"},{"title":"What Technology Does Webacy Build In-House?","href":"/what-technology-does-webacy-build-in-house"}]},{"group":"Contract Security","pages":[{"title":"Threats and Labels","href":"/glossary/threats-and-labels"},{"title":"Hidden Mint","href":"/glossary/hidden-mint"},{"title":"Hidden Balance Update","href":"/glossary/hidden-balance-update"},{"title":"Reentrancy","href":"/glossary/reentrancy"},{"title":"Unchecked Low Level Calls","href":"/glossary/unchecked-calls"},{"title":"Malicious Bool Checks","href":"/glossary/malicious-bool-checks"},{"title":"Malicious Burn","href":"/glossary/malicious-burn"},{"title":"Malicious External Call","href":"/glossary/malicious-external-call"},{"title":"Digital Signature Module","href":"/glossary/digital-signature-module"}]},{"group":"Asset Security","pages":[{"title":"Honeypots","href":"/glossary/honeypots"},{"title":"Rug Pulls","href":"/glossary/rug-pulls"},{"title":"Fake Tokens","description":"Spot fake tokens and impersonator scams that copy legitimate project names and symbols on DEXs, and learn how to verify contract addresses safely.","href":"/glossary/fake-tokens"},{"title":"Tax Tokens","href":"/glossary/tax-tokens"},{"title":"Liquidity Risks","description":"Understand liquidity risks in DeFi tokens, including low liquidity, unlocked LP tokens, slippage, and liquidity pull attacks that trap your funds.","href":"/glossary/liquidity-risks"}]},{"group":"Wallet Behavior","pages":[{"title":"Wash Trading","href":"/glossary/wash-trading"},{"title":"Mixers \u0026 Tumblers","href":"/glossary/mixers"},{"title":"Drainers","href":"/glossary/drainers"},{"title":"Phishing","href":"/glossary/phishing"},{"title":"Address Poisoning","href":"/glossary/address-poisoning"},{"title":"Snipers \u0026 Bundlers","href":"/glossary/snipers-bundlers"}]}]}]},{"tab":"Learn","pages":[{"title":"Learn","href":"/use-cases-guides-walkthroughs"}]},{"tab":"API Reference","pages":[{"title":"API Reference","href":"/api-reference/introduction"}]}]},"basePath":"","title":"Tax Tokens - Webacy Docs","buildId":"dpl_5tKr6cUUeuVJdEZ9JAEY3h4soMJ8","deploymentId":"dpl_5tKr6cUUeuVJdEZ9JAEY3h4soMJ8","dynamics":[],"chunks":[]}
