For a Regular Loyalty Program and Tiered Loyalty Program (if configured for closed invoices), you can specify if the points must be redeemed on the pre-tax or the post-tax amount. For more information on closed invoices, see the Closed Invoices in a Tiered Loyalty Program article.
Below are examples to understand how points are redeemed in pre-tax scenario:
Points Redemption: Pre-Tax
If a guest avails a service worth $500, the tax is 5%, and if the guest redeems 60 points (where 1 loyalty point equals 50 cents), let us see how it affects the final amount:
Points Redemption: Post-tax
If a guest avails a service worth $500, the tax is 5%, and if the guest redeems 63 (where 1 loyalty point equals 50 cents), let us see how it affects the final amount: