diff --git a/CRM/Contribute/Form/Contribution.php b/CRM/Contribute/Form/Contribution.php
index f80f9ebd2857..8671dc81bc1e 100644
--- a/CRM/Contribute/Form/Contribution.php
+++ b/CRM/Contribute/Form/Contribution.php
@@ -501,6 +501,8 @@ public function buildQuickForm() {
       return;
     }
     $allPanes = array();
+    //tax rate from financialType
+    $this->assign('taxRates', json_encode(CRM_Core_PseudoConstant::getTaxRates()));
 
     // build price set form.
     $buildPriceSet = FALSE;
diff --git a/CRM/Price/BAO/LineItem.php b/CRM/Price/BAO/LineItem.php
index 43cb11fa4d02..572b2804cf91 100644
--- a/CRM/Price/BAO/LineItem.php
+++ b/CRM/Price/BAO/LineItem.php
@@ -327,7 +327,7 @@ static function processPriceSet($entityId, $lineItem, $contributionDetails = NUL
         $lineItems = CRM_Price_BAO_LineItem::create($line);
         if (!$update && $contributionDetails) {
           CRM_Financial_BAO_FinancialItem::add($lineItems, $contributionDetails);
-          if (isset($contributionDetails->tax_trxn_id) && !empty($contributionDetails->tax_trxn_id)) {
+          if (isset($contributionDetails->tax_trxn_id) && !empty($contributionDetails->tax_trxn_id) && isset($line['tax_amount'])) {
             CRM_Financial_BAO_FinancialItem::add($lineItems, $contributionDetails, TRUE);
           }
         }
diff --git a/templates/CRM/Contribute/Form/Contribution.tpl b/templates/CRM/Contribute/Form/Contribution.tpl
index 7c5597dac574..3859d1eab6e0 100644
--- a/templates/CRM/Contribute/Form/Contribution.tpl
+++ b/templates/CRM/Contribute/Form/Contribution.tpl
@@ -119,6 +119,7 @@
 
         {if $ppID}{ts}<a href='#' onclick='adjustPayment();'>adjust payment amount</a>{/ts}{help id="adjust-payment-amount"}{/if}
         <br /><span class="description">{ts}Total amount of this contribution.{/ts}{if $hasPriceSets} {ts}Alternatively, you can use a price set.{/ts}{/if}</span>
+        <br /><span id="totalTaxAmount" class="label"></span>
       </td>
     </tr>
 
@@ -621,5 +622,26 @@ cj('#fee_amount').change( function() {
     cj('#net_amount').val(netAmount);
   }
 });
+
+cj("#financial_type_id").on("change",function(){
+    cj('#total_amount').trigger("change");
+})
+
+cj('#total_amount').on("change",function(event) {
+if(event.handled !== true) {
+    var financialType = cj('#financial_type_id').val();
+    var taxRates = '{/literal}{$taxRates}{literal}';
+    var taxRates = JSON.parse(taxRates);
+    var taxRate = taxRates[financialType]; 
+    if (!taxRate) {
+       taxRate = 0;
+    }  
+    var totalAmount = cj('#total_amount').val();
+    var totalTaxAmount = Number((taxRate/100)*totalAmount)+Number(totalAmount);
+    cj( "#totalTaxAmount" ).html('Total Amount : '+totalTaxAmount);
+    event.handled = true;
+    }
+     return false;
+});
 </script>
 {/literal}