diff --git a/ruby/lib/jam_ruby/recurly_client.rb b/ruby/lib/jam_ruby/recurly_client.rb
index 4c364dbd9..94e561ca9 100644
--- a/ruby/lib/jam_ruby/recurly_client.rb
+++ b/ruby/lib/jam_ruby/recurly_client.rb
@@ -673,7 +673,7 @@ module JamRuby
             affiliate_distribution = AffiliateDistribution.new
             affiliate_distribution.product_type = "Subscription"
             affiliate_distribution.affiliate_referral = affiliate_partner
-            fee_in_cents = transaction.amount_in_cents * affiliate_partner.rate
+            fee_in_cents = (transaction.amount_in_cents - transaction.tax_in_cents) * affiliate_partner.rate
             affiliate_distribution.affiliate_referral_fee_in_cents = fee_in_cents
             affiliate_distribution.created_at = transaction.created_at.to_time
             affiliate_distribution.product_code = subscription.plan.plan_code