Is sales tax calculated before or after the discount?
This page uses tax-after-discount: the markdown lowers the list price first, then tax is applied to the sale price.
Discount Calculator
Calculate the true sale price from a list price by applying the markdown first, then adding tax only to the discounted subtotal.
From list price to checkout total
The discount reduces the list price first. Tax is then calculated from the discounted sale price, which keeps shopper-facing savings separate from the final checkout total.
Calculate a discounted total
- Enter the list price.
- Choose the markdown percent.
- Add a tax rate if needed.
- Compare sale price, savings, tax, and final price.
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List price, markdown, tax, and savings
Separate each stage so savings and tax do not get mixed together.
Markdown
Sale price
Tax after discount
Final price
Savings
FAQ
Are savings based on the final taxed price?
No. Savings measure how much the markdown removed from the list price. Tax changes the checkout total, not the discount amount.
