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Having a huge problem with sales tax calculation. Magento 1.9

In NY state clothing and shoes under $110 cannot be charged with tax, and items in magento store that were more than $110 and after discount price went bellow $110 are still being taxed.

Tax settings

checkout page

Here is how I have it set up and this is how it comes up on checkout. original price on this jacket is $223 and after 60% sale its $89 however magento still adds tax to the discounted price. Thanks in advance guys.

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    As far as I am aware Magento, out of the box, does not have the ability to set a threshold like $110 for taxation. If you have this configured somewhere it sounds like you might have some additional extension installed that provides this. – Kristof at Fooman Jul 3 '15 at 1:11
  • I don't have any extensions set up, I only have 2 tax rules set up. Regular Tax rate - Retail Customer-Taxable Goods Shoes and Cloths US-NY-RATE-8.875 Products under 110 tax rate - Retail Customer-Taxable Goods Genral US-NY-RATE-under110 – lvekua Sep 1 '15 at 20:45
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Under System > Configuration > Tax > Calculation Settings there are options for the order tax rules are applied, including Apply Customer Tax which can be either Before Discount or After Discount, I'm assuming you currently have it set to Before Discount.

| improve this answer | |
  • I have it set to After Discount – lvekua Feb 6 '16 at 0:41

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