When sales tax is needed, it is only being calculated on the shipping charge and not on the merchandise total. So I have a >$6,000 item that is only showing a $2.63 tax which is 8.25% of the shipping charge of $31.93. How is this possible and how can I fix it? I have checked all the Configuration>Tax settings and the Sales>Tax Classes and Rates. I can't find it anywhere. Why would you ever charge sales tax on shipping and not on the item total? Any help would be appreciated! Thanks!

1 Answer 1


Never mind. I was using the wrong tax class. I had two similar names: Taxable Goods and Taxable Item. I used Taxable Goods when adding the products but used Taxable Item in the Tax class. It's all good now!

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