Crypto token buy and sell tax explained
Why some tokens take a fee when you buy or sell, what is normal, what is a red flag, and how a tax that can be changed becomes a trap.
What a token tax is
Some tokens take a percentage of every buy or sell and send it to the team, a marketing wallet or back into liquidity. It is built into the contract, so you pay it automatically when you trade.
What is normal
Many tokens have no tax. 1–5% is common and usually fine if it is clearly explained. Above 10% is expensive, and a sell tax of 20% or more is a red flag. A sell tax of 50–99% means you effectively cannot sell: that is a honeypot.
The real danger: a tax that can change
If the owner can still change the tax, a token with 0% today can be switched to 99% tomorrow. That is why DexGrade lists owner powers, and records "Sell tax raised from 5% to 25%" in the token's What changed history when it happens.
How to check
DexGrade reads the buy and sell tax for every token it checks, and warns if the owner can still change it.