Create a non-taxed Tip product
You will only take this step once, then you will always use steps under Add a Tip to an Order.
The first step in adding tips to an order is to create a product within the POS that is not taxed. To do this, first, login to your admin.
Next, hoover over products and click 'Add Product.'
Now, its time to create the 'tip' product. To do so, select the product type as 'POS,' now complete the product name, ID and description. It is recommended to leave the price set to $0.00 as every tip could be different, allowing you to edit on the take order screen.
Next, its time to ensure that the POS doesn't charge your customer tax on the tip. To do this, scroll down on the add product page. Under 'Advanced Options' set 'Taxable' to No.
To add this product to your system, click the orange "Save Product" button at the top of the page.
Add a Tip to an Order
From the take order screen, use the "Search Products" box and find 'Tip'
Click on the tip product that appears in the drop down. Now, edit the 'Price' of the tip product and click "Add Product."
The system will not charge tax on this item and it will not affect the tax on any other item that is on the order.