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How to Configure Highest & Lowest Tax Rate in Magento Shopping Cart

Configure Highest & Lowest Tax Rate in MagentoMagento Go supports tax on shipping, which makes it easy to meet complex tax requirements. It can also be used with any shipping method, existing tax classes and rules. Tax on shipping supports both inclusive and exclusive pricing, and includes a number of options.

This tutorial is part of a series on Tax on Shipping and includes two such options – Highest and lowest tax rate in the cart. It will cover how to configure highest tax rate in Magento, how to configure lowest tax rate in Magento, and how to see the results in Magento.

Steps to Configure Highest Tax Rate in Magento Shopping Cart

  • Log in to your Magento store backend after entering the correct credentials
  • From the Admin Panel, select System > Configuration
  • In the Configuration Panel on the left, under Sales, select Tax
  • Click to expand the Tax on Shipping section and carryout the following steps in that section:
  1. Set Enabled to Yes
  2. Set Totaling Algorithm to ‘Highest Tax Rate in chart
  • Click the Save Config button to save the changes made

Steps to Configure Lowest Tax Rate in Magento Shopping Cart

  • Log in to your Magento store backend after entering the correct credentials
  • From the Admin Panel, select System > Configuration
  • In the Configuration Panel on the left, under Sales, select Tax
  • Click to expand the Tax on Shipping section and carryout the following steps in that section:
  1. Set Enabled to Yes
  2. Set Totaling Algorithm to ‘Lowest Tax Rate in chart’
  • Click the Save Config button to save the changes made

Steps to See the Results in Magento Shopping Cart

  • From the store, log in to your customer account
  • Add some products to your shopping cart and go to checkout
  • Set country to ‘India’ in the Estimate Delivery and VAT section
  • Enter the Postal Code and click the Get a Code button
  • Select the Delivery Method for the selected goods
  • Click the Update Total link

If you are unable to configure Tax on Shipping settings in your Magento store, then either follow the steps once again carefully or Request a Quote with us. Our Magento team of developers will assist you in the process.

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