Why are my customers getting free shipping on orders under my free shipping settings?

[kdogg]

First of all, this is only a difference of a couple cents but if a customer has an order for $149.98 for example, they get the option of free shipping because I've set free shipping on all orders over $150 dollars.

 

However, this order isn't over $150 dollars. Why is the free shipping kicking in? Whats setup wrong?

 

I mean for example, I set some prices to say $149.99, so it would be just under $150, because I didn't want that product ordered single to get free shipping. Its not working however.

[kdogg]

Ok, I've figured out that it's in state orders only. I tried placing the same over with one of my own fake test accounts that has an out of state address and this doesnt happen. When I use my in state address account, it does.

 

My guess is the cart is figuring the price is over $150 because its including in the state sales tax?

 

If there a way to have the free shipping on orders over $150, NOT include state sales tax into the total before offering the free shipping. I want to offer free shipping on orders over $150, before tax just for my home state.