Amazon Prime provides customers access to Prime Video, free delivery, and many other benefits for a low monthly fee. If you’ve recently purchased Amazon Prime, you might be curious about the amount of tax included in the price. So, how much is Amazon Prime with tax by the state?
How Much Is Amazon Prime With Tax?
The annual cost of an Amazon Prime membership is $139 at the base price, but it may rise to over $150 depending on the state-specific tax rates that users must pay. Amazon Prime attracts tax in 34 states out of the 50 United States.
Amazon computes the taxes based on state and local tax regulations. And although Amazon Prime is a service rather than a physical item, some states collect tax on the subscription service. Keep reading to find out more about the tax on Amazon Prime membership.
Is There Tax on an Amazon Prime Membership?
Whether or not you pay tax for an Amazon Prime membership will depend on what state you live in. Only 16 states in the US do not include local taxes for Amazon Prime membership. Currently, 34 states in the US charge tax for Amazon Prime memberships.
The following is a list of the states that charge tax for Amazon Prime and their respective tax rates:
- 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%
Source: Tax Foundation
You need to know how to calculate the price, including tax, when your membership is due for renewal. All current Amazon Prime members will pay the following rates:
- $14.99 monthly or $139 annually
- Prime video price is $8.99 per month.
People with Amazon Prime Student accounts pay $7.49 monthly or $69 annually. You might be eligible for a discounted Amazon Prime membership of $6.99 per month if enrolled in a government assistance program like EBT or Medicaid.
Your Amazon Prime purchase cost will vary depending on whether you reside in a state that mandates tax payment or not. Amazon Prime will cost $139 a year, or $14.99 per month, for users not paying taxes. However, depending on the tax rates in each state, buyers who must pay tax could end up shelling out over $150 annually.
For instance, California residents who purchase Amazon Prime must pay 7.25% in sales tax, an additional $10.08 for an annual membership.
After taxes, Amazon Prime will cost a different amount depending on the state, even if the base price is $139 globally. If you frequently shop on Amazon, you may require to pay a different amount when purchasing an Amazon Prime membership.
To avoid being caught unawares when your amazon Prime membership is paid, add your state and local taxes to the standard Amazon Prime pricing to know precisely how much you’ll have to pay.
Why Is There a Tax on Amazon Prime?
The State Department of Revenue mandated tax for Amazon Prime memberships. However, not all states charge tax for Prime memberships, especially those not compelled to do so by law.
So, Amazon collects state taxes in states where they are mandated. The extra charge is a sales tax from the state and differs from state to state, depending on the state’s tax laws.
How Much Is Amazon Prime With Tax in NY?
While the general Amazon Prime subscription is $14.99 monthly and $139 yearly, the Amazon Prime with tax in New York is $15.59 monthly and $144.56 annually due to the 4% tax on Amazon Prime.
How Much Is Amazon Prime With Tax in California?
While the general Amazon Prime subscription is $14.99 monthly and $139 yearly, the Amazon Prime with tax in California is $16.08 monthly and $149.08 annually due to the 7.25% tax on Amazon Prime.
How Much Is Amazon Prime With Tax in Texas?
While the general Amazon Prime subscription is $14.99 monthly and $139 yearly, the Amazon Prime with tax in Texas is $15.93 monthly and $147.69 annually due to the 6.25% tax on Amazon Prime.
How Much Is Amazon Prime With Tax in Ohio?
While the general Amazon Prime subscription is $14.99 monthly and $139 yearly, the Amazon Prime with tax in Ohio is $15.85 monthly and $146.99 annually due to the 5.75% tax on Amazon Prime.
How Much Is Amazon Prime With Tax in Arizona?
While the general Amazon Prime subscription is $14.99 monthly and $139 yearly, the Amazon Prime with tax in Arizona is $15.82 monthly and $146.78 annually due to the 5.60% tax on Amazon Prime.
Does Amazon Charge Tax in Florida?
Amazon charges a 6% tax in Florida. So, while the general Amazon Prime subscription is $14.99 monthly and $139 yearly, Amazon Prime with tax in Florida is $15.89 monthly and $147.34 annually due to the 6% tax on Amazon Prime in Florida.
When Did Amazon Add Taxes to Amazon Prime Subscriptions?
Amazon Started collecting tax on Amazon Prime subscriptions in 2011 in five states, and Amazon collects state taxes in states where they are mandated to do so. The extra charge is a sales tax from the state and differs from state to state, depending on the state’s tax laws.
Can You Avoid Pay Taxes on Amazon’s Membership Fee?
Only people who reside out of the 16 states where state laws do not bind Amazon Prime customers to pay state taxes can avoid paying taxes on Amazon prime Subscriptions.
So, having a family member or friend that lives in any of the 16 states that do not require prime members to pay taxes can be an advantage. You can tell these friends and family to help you pay for your Amazon Prime membership.
This may not work for Amazon orders as Amazon may still charge the recipient’s state and local taxes if you purchase a product in one state and deliver it to another.
Conclusion
An Amazon Prime membership costs $14.99 per month and $139 per year without tax. However, you may pay up to $150 depending on the state-specific tax rates. Amazon only collects sales tax in 34 of the 50 states; not all states charge tax for Amazon Prime membership subscriptions.