Why is the total tax for my order less than calculated?

Accounting & Taxes

Topic summary

A user is questioning a discrepancy between their calculated sales tax and the amount actually charged on an order containing a lanyard, decal, and shipping.

Their calculations:

  • Lanyard tax: $0.28 (3% Houston County + 4% Georgia State)
  • Decal tax: $0.70
  • Shipping tax: $0.42
  • Expected total: $1.40

Actual charges on order:

  • Houston County tax charged: $0.55 (expected $0.60)
  • Georgia State tax charged: $0.73 (expected $0.80)
  • Actual total: $1.28

The user specifically notes the shipping tax appears incorrect—they calculated $0.60 for Houston County and $0.80 for Georgia State on shipping, but the order shows different amounts. They’re seeking clarification on why the total tax is $0.12 less than expected and how shipping tax was calculated.

This appears to be a follow-up to a previous support ticket with someone named Zack, where product tax was already addressed but shipping tax remains unresolved.

Summarized with AI on November 22. AI used: claude-sonnet-4-5-20250929.
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Following up on the above ticket:

Hi Zack,

Thanks for the quick response. I think that we are on the same page when it comes to taxes on the actual product. Where I am finding a difference is with the taxes charged for shipping.

Lanyard:
Houston County Tax (3%): $0.12
Georgia State Tax (4%): $0.16
Total Tax: $0.28

Decal:
Houston County Tax (3%): $0.30
Georgia State Tax (4%): $0.40
Total Tax: $0.70

Shipping:

Houston County Tax (3%): $0.18
Georgia State Tax (4%): $0.24

Total Tax: $0.42

Total Tax for Complete Order: ($0.28+$0.70+$0.42)= $1.40

According to my calculations the total tax for the complete order should have been $1.40, but the customer was charged $1.28. The order shows that $.55 was charged for Houston County tax, but I am showing that it should have been $0.60 ($0.12+$0.30+$0.18). For Georgia State the order shows $0.73 charged, but I am showing that it should have been $0.80 ($0.16+$0.40+$0.24).

Please advise.

Thanks