I've currently setup a coupon code that when entered gives 10% on everything in the shopping cart.

This works fine, my issue though is that Tax is calculated wrong. Currently tax is calculated purely based on the [subtotal]

If discount is applied I need tax to be calculated based on: [subtotal] - [discount] = [amount_to_base_tax_calculation_on] * [tax_rate] = Correct tax

Is there any settings / options ive missed to make the checkout page do this?

  • what settings do you have for tax setup? Jan 15, 2014 at 12:11
  • Totally missed the tax options in configuration. It was truly easy to edit. Posted the "solution" below Jan 15, 2014 at 12:18

1 Answer 1



Go to System > Configuration > Sales > Tax "Apply Customer Tax" set to: "After Discount"

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