I have a problem with discount codes and taxes, I just cannot get it to result in the correct values.


  • I have a tax of 25% on my site.
  • The tax is already applied to the price of the products.
  • I have a product in my basket worth 120
  • I have a 30% discount code

Intended result:
Subtotal: 120
Discount: -36
Total: 84
Tax: 16.8

Tried everything
I have now tried every combination possible to have this outcome, but no matter which settings I pair together, one of the values is wrong.

The closest I can come is through:

  • Apply Customer Tax: Before Discount
  • Apply Discount on Prices: Excluding Tax

This combination provides the wrong discount value in frontend, but it is purely cosmetic as the calculations and the total are done correctly:

Subtotal: 120
Discount: -29
Total: 84
Tax: 16.8

This approach however does not work with fixed discount values.

Is there something I am missing? What can I do?

1 Answer 1


Check System - Configuration - Sales - Tax - Calculation where you can set

  • Catalog prices include tax
  • Shipping prices include tax

and set them to the correct options for your store.

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