Tax calculation is incorrect

For 135 at 17% tax the values should be:

115.38 exceeding tax
19.62 tax

Definitely not 22.95 – that would be 17% of 135 – that’s not how you work tax out. You ADD 17% to the excluding tax price (115.38) to get the including tax price (135)

Hi @sponser1

I activated tax for my store but the calculation of the tax is wrong. I did 17% tax rate and for some reason it calculate less.

For example: for 135 it calculates 14.5 tax, where it should be 22.95. I attach screenshots of the tax settings and general settings:

From what I understand, you’re experiencing an issue with tax calculation in your store. You’ve set a tax rate of 17%, but the system is calculating less than expected. For instance, for a product priced at $135, the tax calculated is $14.5 instead of $22.95.

Looking at the screenshots you’ve provided, it appears that you have the “Yes, I will enter prices inclusive of tax” option selected under the “Prices entered with tax” settings. This means that the prices you’re entering for your products already include tax and the tax amount is calculated differently for tax-inclusive prices.

Here’s how the tax calculation works for tax-inclusive prices: Tax Amount = Price - (Price / (( Tax Rate % / 100 ) + 1 ))

So, if we apply this formula to your example where the price is $135 and the tax rate is 17%, the tax amount would be:

Tax Amount = $135 – ( $135 / ( ( 17 / 100 ) + 1 ) )
Tax Amount = $135 – ( $135 / 1.17 )
Tax Amount = $135 – $115.38
Tax Amount = $19.62

So, the net price is $115.38 and the tax amount is $19.62, which totals the original price of $135. The system is calculating the tax based on the tax-inclusive price, not the pre-tax price.

If you want the system to calculate the tax based on the pre-tax price, you should select “No, I will enter prices exclusive of tax” in your tax settings. This way, the tax will be added to the product price, not included in it. ?? You can find more information about Setting up Taxes in WooCommerce Here

I hope this helps clarify the issue. If you have any other questions or need further assistance, please don’t hesitate to ask.

Yes my bad it should be 19.62$, but it still doesn’t calculate it as 19.62$ but instead it’s 14.5$. The calculation of the tax is wrong. I need the tax calculation to be based on tax-inclusive price so the prices of the products on my store will include tax already.

14.5 would be 17% of 99.75 so not sure where it’s getting that from

Can you share a link to your store so we can have a look at the products

Hi @sponser1

Yes my bad it should be 19.62$, but it still doesn’t calculate it as 19.62$ but instead it’s 14.5$. The calculation of the tax is wrong. I need the tax calculation to be based on tax-inclusive price so the prices of the products on my store will include tax already.

I see that you’re still having trouble with your store’s tax calculation. It’s showing $14.5 instead of $19.62 for a product priced at $135.

You’ve already confirmed that you want your product prices to include tax, so the settings seem to be in order. But, this difference in tax calculation is unusual and we need to look into this more.

To help you better, could you give me a little more information?

1. Could you confirm if this issue is happening with all products or just specific ones?
2. Have you set any specific tax classes for these products?
3. Could you please provide screenshots of the product details page where you’ve entered the price?
4. Have you set up any additional tax rates under the “Standard rates”, “Reduced rate rates” or “Zero rate rates”?

This information will help us get a better understanding of the situation and find the best solution for you. You can use https://snipboard.io to share screenshots. Just follow the instructions on the page and paste the URL in your reply.

Also, could you send us a copy of your site’s System Status? It will give us a clearer view of your site’s setup and help us identify the problem. You can find it via WooCommerce > Status. Select Get system report and then Copy for support.

Once you have that, please paste it inside a Code block in your reply, or use https://pastebin.com/ to paste it and share the link with us.

In the meantime, I recommend clearing your cache and cookies or trying a different browser to see if the problem continues. Sometimes, browser-related issues can cause these kinds of discrepancies.

Thanks for your patience and cooperation.

1. This issue is happening with all products.
2. I didn’t set any specific tax classes.
3. https://i2.paste.pics/a274264950b0f1221cf8b59f1db520ac.png?trs=3c159730339e1fed96ee4b988bef17581c4ef68a0218a8d78f652a929050a5aa
   https://i2.paste.pics/6e01d3bf3f74316d4cb92fbdb0ee3ef9.png?trs=3c159730339e1fed96ee4b988bef17581c4ef68a0218a8d78f652a929050a5aa
4. No additional rates has been set. Only 1 rate is set and it’s the 17% under “Standard rates”

System report: https://pastebin.com/9rdP3CqS

I tried to clear cache and cookies, also tried a different browser but still the same result.

Thanks for the help

Hey still having this issue, would be glad to get some help to solve it.

Thanks

Hello @sponser1,

From my end, the tax is not being calculated at all. Could you please try disabling the WooCommerce Multilingual & Multicurrency plugin?


Let us know how it goes!

Hey, sorry I disabled it because it didn’t work properly.

I activated it now so you could see.

thanks for the help

• This reply was modified 1 year, 3 months ago by sponser1.

Hey still dealing with this issue.
Can someone help me fix it please

Hi @sponser1

I’ve reviewed all your replies and the information you shared, and everything looks normal. However, I suggest you update your WC database, which currently shows an older version (7.6.1). You can do this by navigating to WooCommerce > Status > Tools.

• Update database > Update
• Verify base database tables > Verify
• Regenerate the product attributes lookup table > Regenerate
• Delete WooCommerce tax rates > Delete (We will create the tax rule again)
• Clear template cache > Clear
• WooCommerce transients > Clear
• Expired transients > Clear

Once you’ve completed the above action, navigate to WooCommerce > Settings > Tax. Here, you’ll need to set up the tax rule again as follows:

1. Prices entered with tax, set to “Yes, I will enter prices inclusive of tax”

2. Go to standard rates tab and enter the rate as 17.0000.

3. Open your product and set the tax status to “Taxable.” Also, ensure that the tax class is set to “Standard.”

This will ensure that the prices displayed in your store include tax, and the tax calculations should now be correct.

Additionally, please increase your PHP Post Max Size from 256 MB to 2 GB and PHP Time Limit from 120 to 1200 for optimal performance.

If you’re still experiencing issues after trying these steps, please let us know so we can assist you further.

Let us know how that goes. Looking forward to helping you.

Hey Shameem, first of all thanks for trying to help.
I did every step that you told me to do but still same result..
For example, total cart of 29.98$ show 2.90$ tax.

Any help someone? I tried everything and can’t figure it out..

Hi there!

Thank you for your patience.

Can you please send me the live page link to this product, so I can try to reproduce the problem from my side?

When checking your settings, I see:

• Product price includes taxes.
• The Sale Price is 52,99$.
• The taxes are 17%
• The Sale Price excluding taxes should be 45,29$
• The taxes should be 7,7$
• The taxes will also be calculated for the shipping fees so they will include an extra amount

Also, please disable the?WooCommerce Multilingual & Multicurrency?plugin.

We haven’t heard back from you in a while, so I’m going to mark this as resolved – we’ll be here if and/or when you are ready to continue.