โ Does Sales Tax Apply Before or After Discount?
By default, sales tax applies to the reduced post-discount price. For example, a $100 item with a 20% discount ($80) and 8% tax adds $6.40 tax, making the total $86.40.
Discount + Tax Formula: Final Total = Original Price ร (1 โ Discount / 100) ร (1 + Tax Rate / 100)