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Does Amazon Prime Charge Tax

Does Amazon Prime Charge Tax In 2022? (Your Full Guide)

Amazon.com, Inc.
Amazon
Formerly Cadabra, Inc. (1994–1995)
Type
Public

ISIN


US0231351067

Industry
Founded July 5, 1994

; 27 years ago


(

1994-07-05

)



Bellevue, Washington

, U.S.
Founder
Jeff Bezos
Headquarters

,

U.S.
Area served
Worldwide
Key people
Products
Services
Revenue Increase

US$

469.822 billion (2021)


[1]




[2]

Increase
US$24.879 billion (2021)


[1]

Increase
US$33.364 billion (2021)


[1]



Total assets

Increase
US$420.549 billion (2021)


[1]



Total equity

Increase
US$138.245 billion (2021)


[1]

Owner Jeff Bezos (14.0% voting power, 10.6% economic interest)


[3]

Number of employees
Increase
1,608,000 (Dec. 2021)


[1]



U.S.: 950,000 (Jun. 2021)


[4]


Subsidiaries
Website

amazon.com


Footnotes / references




[5]




[6]

Amazon Prime offers a range of benefits, including unlimited photo storage and access to Amazon Prime Video. Customers can also get free shipping for a nominal monthly fee.

  • Some customers may be curious if Amazon will charge tax on Prime purchases. You can read this article to see the info I collected!
  • Does Amazon Prime Charge Tax In 2022? (Your Full Guide)

    Does Amazon Prime Charge Tax In 2022?

    Amazon Prime memberships will now be charged tax in certain states. Amazon will add tax to the price of the Amazon Prime Membership depending on the amount and laws in place. Amazon is only required to collect tax from 34 of the 50 states that have Prime memberships.

  • Keep reading to get more info about Amazon Prime tax rates in different states, how Amazon calculates taxes and how the Prime membership prices with tax.
  • Amazon Prime does Amazon charge tax in every state?

    Amazon Prime doesn’t charge taxes in every state. Amazon Prime Memberships are currently taxed in 32 states, with the rest not having local taxes.

    Here are the tax rates and states that must pay Amazon Prime tax:

  • Alabama- 4%
  • Arizona- 5.60%
  • Arkansas- 6.50%
  • California- 7.25%
  • Colorado- 2.90%
  • District of Columbia- 6%
  • Florida- 6%
  • Hawaii- 4%
  • Idaho- 6%
  • Iowa- 6%
  • Kentucky- 6%
  • Louisiana- 4.45%
  • Maryland- 6%
  • Michigan- 6%
  • Minnesota- 6.875%
  • Mississippi- 7%
  • Missouri- 4.225%
  • Nebraska- 5.50%
  • New Jersey- 6.625%
  • New Mexico- 5.125%
  • New York: 4%
  • North Carolina- 4.75%
  • Ohio- 5.75%
  • Pennsylvania- 6%
  • Puerto Rico- 10.5%
  • Rhode Island – 7%
  • South Carolina: 6%
  • South Dakota: 4.50%
  • Tennessee- 7%
  • Texas- 6.25%
  • Utah- 6.10%
  • Vermont- 6%
  • Washinton- 6.50%
  • West Virginia- 6%
  • Wisconsin- 5%
  • Wyoming- 4%
  • Amazon Prime members who wish to order an Amazon Prime membership should check the following list. This will tell them if they are subject to tax.

    Does Amazon Prime Charge Tax In 2022? (Your Full Guide)

    How does Amazon Prime calculate Tax?

    Amazon will calculate taxes for purchases based upon the following:

  • The seller’s identity
  • The type of item or service purchased
  • When and where the fulfillment will occur
  • Your shipping or delivery address
  • When Amazon fulfills an order, they calculate the tax based on the state and local laws of where the order was fulfilled.

    Amazon Prime, however, is a service. This means that Amazon might calculate tax in a different way than normal if the taxpayer lives in a state where tax must be paid.

    If customers shop from Amazon frequently and are familiar with the tax amounts they pay, they should be aware that Amazon Prime members may require them to pay an additional amount.

    Amazon Prime: How Much After Tax Does It Cost?

    Amazon Prime purchases will result in slightly different totals depending on whether the customer lives in an area that has tax requirements.

    Amazon Prime, which is free to customers who don’t pay taxes, will be $119 a year and $12.99 a month. However, customers who have to pay tax may end up paying up to $130 per year depending on the tax rates per state.

    Customers who reside in California, for example, must pay 8.60 percent sales tax on top of the original price of Amazon Prime.

    Customers will also need to consider local taxes in addition to state taxes. This will affect the final amount they pay.

    Overall, Amazon Prime will amount to a different price for different states after tax, while the base price is $119 universally.

    If customers are curious as to the exact amount they will have to pay, they are encouraged to calculate their state and local taxes with the Amazon Prime base price to ensure they aren’t blindsided when charged for their Prime membership.

    Does Amazon Prime Charge Tax In 2022? (Your Full Guide)

    Amazon Prime charges tax

    Amazon charges tax for Amazon Prime memberships because it is required by The State Department of Revenue. Even though Prime memberships may not be available to all States, states that pay taxes are legally required.

    Some Amazon Prime customers have expressed irritation about having to pay tax on their Prime membership, as historically retail memberships don’t usually require taxes.

    RCW stated that the retail tax is only applicable to the component products and services. However, it states that the whole membership transaction will be subject to the retail tax.

    To put it another way, Amazon Prime is subject to tax because of the many services they offer, including shipping and handling.

    How can I avoid Amazon tax?

    Customers cannot avoid taxes with their Amazon Prime membership. Customers must be in the one of the 16 US states not subject to tax to get Amazon Prime.

    Amazon will not tax customers who order other products from them through an out of state friend or relative.

    For more information on Amazon Prime, please visit our post How to Cancel Amazon Prime Free Trial, Amazon Prime Trial without a Credit card and What Devices can Use Amazon Prime.

  • Conclusion
  • Amazon Prime costs tax in 34 out of 50 US states. The base price for an Amazon Prime membership is $119 per year, but it can cost up to $130 per year depending on the amount of tax that customers are charged in each individual state.

    Amazon bases its tax calculations on local and state tax laws. Amazon Prime may have slightly different tax rates because it is a service and not a physical order.

    Amazon Prime Memberships: Are there any taxes?

    Are there any taxes on Amazon Prime membership fees? Yes, Amazon Prime membership fee is subject to state sales tax. This tax doesn’t apply across the US. Amazon Prime member fees must be taxed by 34 US states, and District of Columbia.

    Amazon Prime for 2022: How Much Will It Cost You?

    The new rates will be effective for Prime members who renew after March 25th, 2022. Upcoming changes: The price of the monthly Prime membership will increase to $14.99/month, and the price of the annual Prime membership will increase to $139/year.

    .Does Amazon Prime Charge Tax In 2022? (Your Full Guide)

    See also  Amazon Prime Buffering, Skipping, Freezing

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