Tax calculation showing wrong in magento2

Question

Total is 607.77 and TAX is 6%, it's 36.4662

But magento showing 37.67

Can anyone help me how i can get 36.4662 insted 37.67?

Admin side tax settings:

Thanks in advanced.

Answer 1

Taxes are displayed correctly. According to the calculation setting taxes are being calculated on Total. Let me explain, you have a 6% tax applicable on "Total" and the breakdown is as follows:

• Subtotal: 607.77
• Total would be (Subtotal + Shipping Price): 607.77 + 20 = 627.77
• 6% tax on subtotal is (State Tax + County Tax): 607.77 * 6% = 36.47
• 6% tax on shipping price is: 20 * 6% = 1.20
• So the total tax applicable is 627.77 * 6% = 37.662 (approx 37.67) OR if you add up all the taxes 36.47+ 1.20 = 37.67.

You are calculating the tax on subtotal instead of total that's what confusing you. There are a couple of things you can do here:

• If taxes displayed against state, county, and shipping are correct then you can subtract the tax amount of shipping from the total tax and display the remaining amount which would be in this case 37.7 - 1.20.
• If you do not want to apply the tax on shipping then you can go to the tax calculation setting in the backend and set the shipping price to "including tax" but this will make Magento assume that the shipping price already has tax applied to it and this will stop showing tax applied to the shipping price.
• You can add an additional row in the summary block where you can specify "Tax applied on subtotal" and display 37.7 - 1.20 along with the Total tax, it will give a clear picture of the actual calculations.

I think the problem is in the representation instead of calculations since I am not aware of your client's requirements and your customizations, these are the only suggestions I can provide.

Answer 2

you need to select "None" for the"Tax Class for Shipping" setting