Does Amazon Prime Charge Tax in 2024

Enjoy exclusive Amazon Prime benefits such as unlimited photo storage and Amazon Prime Videos like popular movies and T.V. shows by watching and canceling at any time you wish. You can watch using any device on the website or with the prime video app on your tablet or phone, or select Smart T.V.s on up to three machines.

Looking for an online store that will enable you to get rid of whatever you need and think? One of the world's most valuable brands that can sustain customers' needs is Amazon. The introduction of Amazon Prime to its loyal customers has enabled the company to grow day by day. Amazon Prime allows its customers to subscribe to a certain monthly or annual amount. Later on, you can receive benefits exclusive to Amazon Prime members only and not available to regular Amazon customers. Amazon customers enjoy many benefits such as free shipping, access to Amazon Prime Video, unlimited photo storage, and various other benefits at an affordable price. Nevertheless, some customers who have subscribed to Amazon Prime may wonder if Amazon charges tax in addition to the price. Suppose you are curious about whether Amazon Prime Charges taxes; this blog post will make you learn more.

Table Of Contents

What Is Amazon Prime?

Amazon prime is a service offered by Amazon.com to enable subscribers to have benefits exclusive to Amazon Prime members and not available to regular Amazon customers. Amazon Prime is an optional subscription on Amazon.com, which provides its customers with shipping offers, free-of-charge shipping delivery, and accessible standard shipping.

Amazon Prime offers many benefits to customers, such as Unlimited photo storage, access to Amazon Prime video, free shipping, and various other benefits with a discounted price per month or annum. By signing up for an Amazon Prime subscription, you can receive these benefits, which provide you with two payment options. One can either opt for a monthly or annual subscription to enhance savings.

Does Amazon Prime Charge Tax In 2024?

Yes, Amazon Prime charges taxes from Amazon Prime members in 2024. Amazon Prime charges its customer’s taxes because of state tax remittance. To stay legal with United states tax laws, you must remit the tax to the government. Customers always come across an extra charge from Amazon Prime when billed.

The additional charge from Amazon Prime is the sales tax that customers are being charged. Tax charges depend on the state’s tax laws and are different for each state. Amazon then calculates the difference from the regular price at checkout.

Does Amazon Prime Charge Tax In All States?

Amazon Prime does not charge all states to pay tax for prime membership. Out of the 50 states in the United States, only 34 states are charged by Amazon for Amazon Prime Membership, while the remaining 16 states do not accrue local tax added to their total.

The U.S. States That Levy Tax On Amazon Prime And Their Tax Rates

The list below shows 4 of the 34 states that have to pay tax for Amazon Prime and their tax rate.

Alabama-4%
Hawaii- 4%
Florida-6%
Minnesota-6.875%

How Does Amazon Prime Calculate Tax?

Amazon charges and calculates tax for purchases based on a series of factors. These factors include The seller's identity, the type of item or service bought, the shipment or delivery address of your order, and the time and location of fulfillment. These factors can change when your shipment is complete and when you place an order. Amazon calculates tax based on state and local laws where the customer fulfills an order.

If one lives in a state that requires them to pay tax, Amazon may calculate the tax differently than how they always do because Amazon Prime is a service.

How Much Does Amazon Prime Cost After Tax?

A yearly subscription costs $119, cheaper than a monthly subscription of $12.99. An annual subscription will cost you $139 without paying taxes, with prices steadily increasing. However, customers in states that pay tax may end up paying up to $130 annually, depending on each state's tax rate.

Why Does Amazon Prime Charge Tax?

Amazon Prime charges tax on its members because The State Department of Revenue requires Amazon Prime memberships to pay tax. The tax payment only applies to the 34 states charged by Amazon for Amazon Prime membership.

Can I Avoid Paying Tax On Amazon Prime?

Amazon customers can avoid paying taxes on their Amazon Prime membership by residing in one of the 16 states not required to pay taxes for Prime membership. Customers can also buy other products from Amazon for free from tax by ordering items from states that don't have to pay tax on Amazon.

Benefits Of Amazon Prime

Amazon Prime members can take advantage of many benefits throughout the year through shopping. The most popular Amazon Prime benefits are:

Free Delivery

For customers' convenience, Amazon Prime offers the fastest delivery service. Shipping of All deliveries ordered by Amazon Prime members takes place on just one specific day.

Free Streaming With Prime Video And Prime Video Channels

Amazon Prime offers exclusive Amazon Originals and thousands of popular movies and T.V. shows at an affordable cost.

Amazon Prime Day

Shopping benefits such as Prime day provides exclusive shopping event for Prime members delivering incredible savings and discounts on deals across every category. Amazon Prime day is a sale exclusive to Prime subscribers only.

Free Streaming With Amazon Music

Amazon Prime members can access millions of songs, ad-free, plus podcast episodes. Listen to any ad-free music anywhere at an affordable cost.

Free delivery of groceries with Amazon Fresh

Millions of items are delivered fast and free using an online and physical grocery store at low prices. Customers who do not stay close to the physical grocery store can still get their groceries delivered.

Conclusion

Amazon Prime has led to the development and growth of the Amazon company. It is arguably one of the most valuable brands to sustain customers' needs. Amazon Prime is a service offered by Amazon.com to enable subscribers to have benefits exclusive to Amazon Prime members. Amazon Prime charges taxes from Amazon Prime members in 2024 to remit their state taxes. Amazon charges not all states to pay tax for Prime membership.

Out of the 50 states in the U.S., only 34 states that Amazon charges for Amazon Prime membership. Amazon calculates tax based on The seller's identity. The type of item or service purchased, shipment or delivery address of your order, and the time and location of fulfillment. Amazon Prime charges tax on its members because The State Department of Revenue requires Amazon Prime memberships to pay tax.

For Amazon customers to avoid paying taxes on their Amazon Prime membership, they have to reside in one of the 16 states not required to pay taxes. Or buy other products from Amazon for free from tax by ordering items from states that don't have to pay tax on Amazon.