diff --git a/app/models/spree/order/checkout.rb b/app/models/spree/order/checkout.rb
index 9ffdebe724..123b929851 100644
--- a/app/models/spree/order/checkout.rb
+++ b/app/models/spree/order/checkout.rb
@@ -77,9 +77,9 @@ module Spree
 
               before_transition to: :delivery, do: :create_proposed_shipments
               before_transition to: :delivery, do: :ensure_available_shipping_rates
+              before_transition to: :payment, do: :create_tax_charge!
 
               after_transition to: :complete, do: :finalize!
-              after_transition to: :delivery, do: :create_tax_charge!
               after_transition to: :resumed,  do: :after_resume
               after_transition to: :canceled, do: :after_cancel
               after_transition to: :payment, do: :charge_shipping_and_payment_fees!
diff --git a/spec/models/spree/order/state_machine_spec.rb b/spec/models/spree/order/state_machine_spec.rb
index 27d4e48c95..f455c36e72 100644
--- a/spec/models/spree/order/state_machine_spec.rb
+++ b/spec/models/spree/order/state_machine_spec.rb
@@ -48,16 +48,14 @@ describe Spree::Order do
       end
     end
 
-    context "when current state is address" do
+    context "when current state is delivery" do
       before do
         allow(order).to receive(:ensure_available_shipping_rates)
-        order.state = "address"
+        order.state = "delivery"
       end
 
-      it "adjusts tax rates when transitioning to delivery" do
-        # Once because the record is being saved
-        # Twice because it is transitioning to the delivery state
-        expect(Spree::TaxRate).to receive(:adjust).twice
+      it "adjusts tax rates when transitioning to payment" do
+        expect(Spree::TaxRate).to receive(:adjust)
         order.next!
       end
     end