Question 1

What is a Solana tax token?

Accepted Answer

A token that withholds a percentage of every transfer, enforced by the Token-2022 program itself rather than a smart contract you write. The withheld amount accumulates on-chain for the withdraw authority — you — to collect.

Question 2

What tax rate should I set?

Accepted Answer

Most live tax tokens use 1–5%. Higher rates fund a treasury faster but discourage trading, and venues or aggregators may skip tokens with extreme fees. The maximum-fee cap protects whales from unbounded absolute fees on big transfers.

Question 3

Do all wallets and DEXes support Token-2022?

Accepted Answer

Support is broad but not universal — major wallets handle it, some venues and tools still have gaps. Test a small transfer and a small swap before announcing a launch; honesty about this saves communities grief.

Question 4

Does the tax apply when I move my own tokens?

Accepted Answer

Yes. The program withholds on every transfer without exception — including the creator moving tokens between their own wallets. Plan allocations before distributing.

Tax token creator