Sorry about my broken english as I am not a native english speaker.

I am update Magento 1.9 website from 1.8, finishing, discount price not subtracted from one page checkout page tax.

Discounts apply PayPal and other pages, there is no problem.

Grand Total Excluding Tax 416,67

TAX 33,33

Grand Total Including Tax 450,00

Subtotal 450,00

Discount (discount35) -157,50

  • Please clarify: Your tax percentage is 33,33% and you want to give a 35% discount? Should the Grand Total Including Tax and Before Discount in your example be 450,00? And should the Grand Total Excluding Tax and After Discount be 219,92?
    – MatthijsIJ
    Commented Dec 9, 2014 at 10:12
  • Tax percentage not 33,33%. This tax price. I am lowered the discount rate and try: Subtotal 1.000,00 Discount (discount10) -100,00 Grand Total Excluding Tax 925,93 TAX 74,07 Grand Total Including Tax 1.000,00
    – user17240
    Commented Dec 9, 2014 at 10:34
  • I am facing a similar issue. Attaching the link to my Problem below: magento.stackexchange.com/questions/107583/… Please help in this regard. Commented Mar 30, 2016 at 17:15

2 Answers 2


Copy app/code/core/Mage/Sales/etc/config.xml and paste it to app/code/local/Mage/Sales/etc/config.xml. Then after enter image description here


enter image description here

Hope this will help you.

  • This fixed the problem for me in Magento 1.9.1 Commented Apr 19, 2016 at 13:00
  • cheers my firiend
    – Asish Hira
    Commented Apr 19, 2016 at 13:05
  • are these images? Commented May 18, 2016 at 10:10
  • yes my friend :)
    – Asish Hira
    Commented May 18, 2016 at 14:05
  • This fixed my problem with discount can you please explain why this error generate Commented Dec 19, 2016 at 6:06

It is very hard to tell exactly why your store isn't calculating tax properly when using discounts, but it is most likely caused by wrong settings in:

System > Configuration > Sales > Tax > Calculation Settings

enter image description here

I have outlined the most important settings related to discounts in the screen shot above. Below you will find some explanation for those settings from page 607 of the Magento 1.9.1 User Guide, which you can download here.

  • In the Apply Customer Tax field, select whether tax is applied to the original or discounted price.
  • In the Apply Discount on Prices field, select whether any discounts applied include the tax or exclude it.
  • In the Apply Tax On field, select whether tax is applied to custom prices or to original prices.

You can try different settings and see if this will lead to correct tax calculation. Make and keep a screen shot of your original settings prior to making any changes, in case you want to go back to where you started from.

To find out more about Magento Tax Settings click here.

  • The store settings like this. I tried all the settings and can not result. Thank you for comment.
    – user17240
    Commented Dec 9, 2014 at 11:41

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