# Product Tax Rate Calculation

Example:

I have a product including price is RS 1750 (inr) and tax rate is 5.5%.

And my shopping CART is showing like this

``````SUBTOTAL    RS 1,658.77
TAX         RS 91.23

GRAND TOTAL RS 1,750.00
``````

But 5.5% of 1750 is 96.25

So what is the wrong?

• Tax will be calculated for SUBTOTAL and it did right in case of you `(1658.77*5.5)/100=91.23` `1658.77+91.23=1750`
– dh47
Dec 30 '14 at 10:28
• That is correct, Can you please explain how magento calculated/got 1658.77 as subtotal? Dec 30 '14 at 12:14
• Subtotal is the price of products in the cart what your error actually are you getting subtotal wrong??
– dh47
Dec 30 '14 at 12:23
• I updated my question with image, How magento getting subtotal as 1658.77 from 1750 and tax rate is 5.5%. according my calculation the subtotal would be 1653.75 from 5.5% of 1750 Dec 30 '14 at 12:33

you can edit some setting as you need in your cart

``````System > Configuration > Sales > Tax > Shopping Cart Display Settings
``````

Display Subtotal Store View Determines whether the shopping cart subtotal is shown with tax, without tax, or both.

Excluding Tax: Shopping cart subtotal does not include tax.

Including Tax: Shopping cart subtotal includes tax.

Including and Excluding Tax: Shopping cart subtotal is displayed with and without tax.

you can also refer doc here