Webmasters Stack Exchange is a question and answer site for pro webmasters. It's 100% free, no registration required.

Sign up
Here's how it works:
  1. Anybody can ask a question
  2. Anybody can answer
  3. The best answers are voted up and rise to the top

Should I calculate sales tax before or after a coupon discount is applied? I assume this will vary by state, I'm currently dealing with NY.

We deal with three types of coupons: % discount, $ discount, and free shipping. I know that for % discounts, tax is calculated after the discount is taken. What about $ discounts? What about free shipping (NY does charge sales tax on shipping & handling)

share|improve this question
up vote 2 down vote accepted

You charge tax on the amount of sale that the consumer will be paying for, not original value. So basically the tax is charged on the discounted amount. In your case the "subtotal after discount" + "shipping (which is $0)".

share|improve this answer
Here the shipping itself is discounted – Yisroel May 25 '11 at 19:14
Which is fine. If you're not charging for it then there is no tax to be paid on it. The sales tax is for the amount paid, not original value. – John Conde May 25 '11 at 19:16

Your Answer


By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.