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I don't know where to post my question. I'll try here. I have a question on how tax is calculated on purchases at Amazon.

10,905 2,769 November 27, 2021 at 05:15 PM
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Last Edited by just123me November 27, 2021 at 05:54 PM
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I purchased an item. Do we get taxed on original price before coupon, S&S discounts, etc. or is tax calculated on final price after all the discounts?

Here is an example (final cost is 7.24). I guess I never really questioned the tax before. To me if I go into a store and buy a 100.00 item and give them a 50.00 coupon, I would only pay tax on the 50.00 that the item cost right? Maybe I'm just having a brain freeze.

It just seems odd to pay tax on the 18.15 when I'm only paying 7.24.

Order Summary
Item(s) Subtotal: $18.15
Shipping & Handling: $0.00
Subscribe & Save: -$0.91
Your Coupon Savings: -$10.00
Total before tax: $7.24
Estimated tax to be collected: $1.21
Gift Card Amount: -$8.45
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> bubble2 2 Posts
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emad12
11-27-2021 at 06:20 PM.
11-27-2021 at 06:20 PM.
Yes you pay the full tax amount
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> bubble2 527 Posts
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mtbiker99
11-29-2021 at 01:46 PM.
11-29-2021 at 01:46 PM.
Each state is different. Do a google search of your state "sales tax before or after discount".
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Last edited by mtbiker99 November 29, 2021 at 01:49 PM.
Joined Feb 2009
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> bubble2 10,905 Posts
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just123me
11-29-2021 at 06:06 PM.
11-29-2021 at 06:06 PM.
Quote from mtbiker99 :
Each state is different. Do a google search of your state "sales tax before or after discount".
Thanks. I placed a lot of orders. Does it depend on the seller? Some orders tax was calculated on original price and some on price after all discounts. I always had thought when you buy from Amazon sold and shipped that you'd pay the same amount percent of tax and on price after all discounts. Everything I bought was sold and shipped Amazon.

Oh well, I'll just trust what they charge. Charging 1.21 tax for a 7.24 item just stuck out and seemed very high. That's why I questioned it.
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Last edited by just123me November 29, 2021 at 06:12 PM.
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> bubble2 769 Posts
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ElatedGuitar705
12-01-2021 at 10:04 AM.
12-01-2021 at 10:04 AM.
Depends on the way the discount is applied as well. Some are applied as a reduction in cost of the item, while others go on as a "payment" after tax is calculated.
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> bubble2 3,528 Posts
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1dash1
12-10-2021 at 01:40 PM.
12-10-2021 at 01:40 PM.
Note: The sales tax does not depend on the seller's location nor the buyer's location. It depends on the delivery address. I've bought items for delivery to California (I reside in Hawaii) and was charged the 8+% California sales tax.
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