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Order of discounts and tax on items

Joined
Feb 16, 2012
Messages
3
So say you're buying something that is $1000. You have the 10% TM discount, 5% Redcard, 5% pharmacy rewards, but then 7% sales tax. In what order are the discounts and taxes applied? I need to know exactly how much money I'll need to get something.
 

StaticSun

Former Front-End Guru
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Jun 12, 2011
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AFAIK, it's:

Item subtotal - TM discount - pharmacy + sales tax - redcard discount.

If somebody else has a conflicting idea, let me know.
 

ptl

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Mar 8, 2012
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328
It doesn't matter. They're multiplicative.

1000 * .9 (TM) * .95 (Pharmacy) * .95 (RedCard) * 1.07 (sales tax) = 869.11
_______900____855___________812.25_______869.1075

1000 * .95 (Pharmacy) * .9 (TM) * 1.07 (sales tax) * .95 (RedCard) = 869.11
_______950__________855____914.85__________869.1075

1000 * 1.07 (sales tax) * .95 (RedCard) * .9 (TM) * .95 (Pharmacy) = 869.11
______1070__________1016.50_______914.85___869.1075


etc. etc. Always ends up the same.
 
Last edited:
Joined
Jun 10, 2011
Messages
244
Salestax is always calculated last as you only pay tax on what you actually pay in your final total.
 
Joined
Aug 30, 2011
Messages
672
Salestax is always calculated last as you only pay tax on what you actually pay in your final total.
Agreed, I am almost 100% all discounts come off before Tax is calculated. YOu only pay tax on what you "actually" spend. If they charged you on tax on the moneys your saving, you'd have a lawsuit that would probably cause you to own the federal government. lol
 

ptl

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Mar 8, 2012
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...Again... as I showed in the example above, using real numbers and everything, it doesn't matter what order they're applied. It's all multiplication. The tax can be first, last, or anything in between. You'll end up at the same total regardless.
 
Last edited:
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