Pickup Fee is the amount added to an order collected at this location. It is charged per pickup order, unless:

• Charge only one fee per day of pickup? is on and the customer already has a checkout (that hasn't been cancelled) at this location for the same delivery date – then the fee is $0;
• a free-delivery discount/coupon applies (the fee is converted to a discount instead of being charged);
• delivery fees are disabled for the order.

Tax on the fee follows the Charge taxes on delivery? Client Config setting. Leave the fee at 0 for free pickup.