Totalling Algorithms

1. Highest tax rate in cart

Highest tax rate example

In the above image the 20% tax rate is used for the shipping as it is the highest tax rate.

2. Lowest Tax Rate in Cart

Lowest tax rate in cart example

 

In the above image the 10% tax rate is used for the shipping as it is the lowest tax rate.

3. Flat Tax Rate

The tax rate used for “Flat tax rate on taxable cart” is based on the selected “Tax class for shipping” via System > Configuration > Tax > Tax Classes.

Tax on Shipping - Flat rate

In the above example the tax rate of the product is 10%, whereas the flat tax rate applied to shipping is 5%. This will only affect products that have a tax class assigned.

4. Highest value in the cart

Highest value in the cart example

 

In the above image the 20% tax rate is used for the shipping as it is assigned to the product with the greatest value.

5. Weight Proportion in Cart

Tax on Shipping - Weights
The cart contains 1 x sofa piece (2lb) and 1 x phone (0.5lb) for a total of 2.5lb. The shipping is a flat rate of $10.
  • Proportion of cart weight of the sofa piece is 0.8 therefore the proportion of shipping charge is $8 taxed at the sofa piece’s tax rate of 10% = $0.80
  • For the phone, the proportion of weight is 0.2 therefore the proportion of shipping charge is $2 at a tax rate of 18% = $0.36
  • This gives a shipping tax total of $1.16

 

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