Joined Feb 2009
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Forum Thread
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.
November 27, 2021 at
05:15 PM
Thread Details
Last Edited by just123me November 27, 2021 at 05:54 PM
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
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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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.