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

Amazon.com, Inc.

Logo since 2000
The Amazon Spheres , part of the Amazon headquarters in Seattle, U.S.
Trade name	Amazon
Formerly	Cadabra, Inc. (1994–1995)
Type	Public
Traded as	Nasdaq : AMZN Nasdaq-100 component S&P 100 component S&P 500 component
ISIN	US0231351067
Industry	E-commerce Cloud Computing Artificial intelligence Consumer electronics Entertainment Digital distribution Self-driving cars Supermarket
Founded	July 5, 1994 ; 27 years ago ( 1994-07-05 ) Bellevue, Washington , U.S.
Founder	Jeff Bezos
Headquarters	Seattle, Washington , U.S.
Area served	Worldwide
Key people	Jeff Bezos (executive chairman) Andy Jassy (president and CEO )
Products	Echo Fire Tablet Fire TV Fire OS Kindle
Services	Amazon.com Amazon Alexa Amazon Appstore Amazon Luna Amazon Music Amazon Prime Amazon Prime Video Amazon Web Services
Revenue	US$ 469.822 billion (2021) [1] [2]
Operating income	US$24.879 billion (2021) [1]
Net income	US$33.364 billion (2021) [1]
Total assets	US$420.549 billion (2021) [1]
Total equity	US$138.245 billion (2021) [1]
Owner	Jeff Bezos (14.0% voting power, 10.6% economic interest) [3]
Number of employees	1,608,000 (Dec. 2021) [1] U.S.: 950,000 (Jun. 2021) [4]
Subsidiaries	List A9.com AbeBooks Alexa Internet Amazon.com Amazon Air Amazon Books Amazon Fresh Amazon Games Amazon Lab126 Amazon Logistics Amazon Pharmacy Amazon Publishing Amazon Robotics Amazon Studios AWS Audible Body Labs Book Depository ComiXology Digital Photography Review Eero LLC Goodreads Graphiq IMDb MGM Holdings (sale pending) PillPack Ring Souq.com Twitch Interactive Whole Foods Market Woot Zappos Zoox
Website	amazon.com
Footnotes / references [5] [6]

Amazon Prime customers get a lot of benefits including unlimited photo storage, Amazon Prime Video access, free shipping and many other perks, all for a very small monthly cost.

However, some customers who have purchased Amazon Prime may wonder if Amazon charges tax in addition to the price. You can read this article to see the info I collected!

Does Amazon Prime Charge Tax In 2022?

Amazon Prime Memberships now include tax in select US states. Amazon will also charge tax according the customers’ tax laws and amounts. The difference will be calculated at checkout. Amazon charges only 34 out of 50 states tax to Prime members.

Continue reading to find out more details about Amazon Prime’s taxes, including how Amazon calculates tax. Also, learn how Prime costs tax.

Amazon Prime Does Amazon Charge Tax in All States

Amazon Prime is free of tax for all 50 states. Amazon Prime is currently available in only 34 US states. 16 of the remaining US states don’t have any local taxes.

The states that have to pay tax for Amazon Prime and their tax rates are listed as follows:

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 – 4.5%

Tennessee- 7%

Texas- 6.25%

Utah- 6.10%

Vermont- 6%

Washinton- 6.50%

West Virginia- 6%

Wisconsin- 5%

Wyoming- 4%

Customers who would like to purchase an Amazon Prime membership are recommended to check this list to see if their state is among those that are required to pay tax on their membership fee.

How Does Amazon Prime Calculate Tax?

Amazon calculates the tax due to a purchase based on these factors

The identity and name of the seller

The type of item or service purchased

When and where the fulfillment will occur

Your shipping or delivery address

Amazon calculates the tax due to the law of the place where they fulfilled an order.

Amazon Prime can be a service so they may not calculate the tax as they normally would if they are required to.

Amazon Prime Members may be subject to a higher tax rate for customers who buy from Amazon regularly.

Amazon Prime: How Much After Tax Does It Cost?

Amazon Prime customers will pay slightly more depending on whether their state requires them to tax.

Amazon Prime, which is free to customers who don’t pay taxes, will be $119 a year and $12.99 a month. Customers who are required to pay taxes may have to pay up to $130 annually, depending on their state’s tax rates.

Californian residents must pay 7.25% sales tax. This is approximately $8.60 less than what Amazon Prime customers paid initially.

In addition, customers must account for state and local tax rates, which may add a little to their final cost.

Amazon Prime will be priced differently in each state, depending on tax. But the $119 base price applies universally.

Customers who are interested in knowing the exact cost of their Prime membership will be charged should compare their local and state taxes to determine the correct amount.

What are the best ways to get around Amazon’s tax obligations?

Amazon Prime members cannot avoid having to pay taxes. Customers who live outside of 16 tax-exempt states are able to buy Amazon Prime with no taxes.

Customers can still purchase items from Amazon without paying tax if they have an outside friend or relative who orders their products for them.

We have posts about Amazon Prime that will help you learn more. These include how to cancel Amazon Prime and Amazon Prime trial without credit card. How many Amazon Prime can be used on different devices.

Conclusion

Amazon Prime has 34 US state taxes. Amazon Prime is available at a base price of $119, although it may cost you up to $130 each year depending on how much tax customers pay in each state.

Amazon calculates tax based on the state and local tax laws where the order was fulfilled. Amazon Prime can result in a slight increase in taxes because Amazon Prime is not an actual physical order.

Amazon Prime membership: Is there tax?

What tax is there on Amazon Prime membership? Amazon Prime membership fees are subject to sales tax in each state. This tax doesn’t apply across the US. Amazon Prime membership fees will be subject to taxation in 34 US states as well as the District of Columbia.

How Much Does Amazon Prime Cost for 2022?

The new rates will be effective for Prime members who renew after March 25th, 2022. Coming changes: Monthly Prime membership prices will rise to $14.99/month and annual Prime membership prices will go up to $139/year.

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