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Does Amazon Prime Charge Tax In 2022? (Your Full Guide)
Logo since 2000
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| Amazon | |
| Formerly | Cadabra, Inc. (1994–1995) |
| Type |
Public |
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ISIN |
US0231351067 |
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| Founded |
July 5, 1994 ( 1994-07-05 ) Bellevue, Washington , U.S. |
| Founder |
Jeff Bezos |
| Headquarters |
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U.S.
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Area served
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Worldwide |
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Key people
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| Revenue |
 US$ 469.822 billion (2021) [1] [2] |
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US$24.879 billion (2021) [1] |
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US$33.364 billion (2021) [1] |
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Total assets |
US$420.549 billion (2021) [1] |
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Total equity |
US$138.245 billion (2021) [1] |
| Owner |
Jeff Bezos (14.0% voting power, 10.6% economic interest) [3] |
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Number of employees
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1,608,000 (Dec. 2021) [1] U.S.: 950,000 (Jun. 2021) [4] |
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Subsidiaries |
List
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| Website |
amazon.com |
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Footnotes / references [5] [6] |
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Amazon Prime provides a number of benefits to customers, such as unlimited photo storage, access to Amazon Prime Video, free shipping, and a variety of other perks for a small fee per month.
Is Amazon Prime Tax-Free in All States?
Amazon Prime doesn’t have to charge any tax in each state. Amazon Prime members in 34 US states currently have to pay taxes. The 16 other US states do not need to add local taxes to their overall total.
These are the states which must pay taxes for Amazon Prime.
If you are looking to buy an Amazon Prime membership, it is a good idea to look at this list. It will show you if your state has to pay taxes on the membership.
How does Amazon Prime calculate Tax?
Amazon will calculate taxes for purchases based upon the following:
Amazon calculates the tax due to the law of the place where they fulfilled an order.
However, because Amazon Prime is a service, Amazon may calculate the tax differently than they would normally if they live in a state that requires them to pay tax.
Amazon Prime Members may be subject to a higher tax rate for customers who buy from Amazon regularly.
Amazon Prime Price After Tax
When customers purchase Amazon Prime, the total will vary slightly depending on whether customers live in a state that requires them to pay taxes or not.
Amazon Prime for $12.99 per Month or $119 annually if no taxes are due. However, Amazon Prime customers that are subject to tax might end up having to pay as much as $130 per calendar year, depending on state tax rates.
California residents, for instance, will have to pay an additional $8.60 in sales tax to Amazon Prime.
Additional taxes that customers may have to pay include state and local taxes.
Amazon Prime, which is a subscription service, will have an overall price that varies for states. However, the standard price is $119.
To ensure that they don’t get ripped off when they pay for Prime, customers can calculate the state and local taxes they will need to cover the cost.
Amazon Prime: Why does it charge tax?
Amazon Prime members are subject to tax because The State Department of Revenue requires it. Though not all states are charged taxes for Prime memberships, the law requires that those in these states do.
Amazon Prime members have complained about being charged tax for their Prime membership. However, retail memberships are not usually subject to taxes.
The RCW however states that, if components products or services fall under retail tax, then memberships as a whole are subject to retail taxes.
In other words: Amazon Prime offers a variety of services, such as shipping, handling and return, that are often subject to retail taxes. The membership is also subject to tax.
How can I avoid Amazon tax?
Customers cannot avoid taxes with their Amazon Prime membership. Currently, the only way to purchase Amazon Prime without tax is if customers live in one of the 16 states that are not required to pay taxes for Prime.
Amazon customers may purchase additional items free of tax by ordering their items through an out-of state friend or family member. However, they must live in a state where Amazon does not charge tax.
To know more about Amazon Prime, you can also read our posts on how to cancel Amazon Prime free trial, Amazon Prime trial without a credit card, and how many devices can use Amazon Prime.
Amazon Prime has 34 US state taxes. Amazon Prime members pay $119 per year as the base, with additional fees depending on each state’s tax.
Amazon computes taxes based on where the order was placed and the applicable tax laws in each state. Amazon Prime might have a slightly higher tax rate because Amazon Prime is a service, not a physical item that must be shipped.
Amazon Prime Memberships: Are there any taxes?
What tax is there on Amazon Prime membership? Amazon Prime Membership Fee is subject to sales taxes in the states. It is not valid in all US states. Currently, 34 US states and the District of Columbia require Amazon to levy tax on Amazon Prime membership fee.
Amazon Prime 2022: What is the Cost?
For current Prime members, the new prices will apply after March 25, 2022, on the date of their next renewal. Upcoming changes include an increase in the Prime monthly membership price to $14.99 per month and an increase in the Prime annual membership price to $139 per year.
.Does Amazon Prime Charge Tax In 2022? (Your Full Guide)