Does Amazon Charge Tax on Purchases?


Quick Answer

Amazon only charges tax on purchases from 23 states that have passed laws requiring the company to tax purchases as of 2014, including Arizona, California, Connecticut, Florida, Georgia, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin. Buying a gift card is not subject to tax, but products paid for with a gift card are taxed.

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Full Answer

In the past, Amazon strived to avoid taxing the purchases of their customers as a measure to combat competition from rivals, such as Overstock and eBay. Since it has more presence in all states than any of its competitors, its customers may be required to pay sales tax. The amount of tax charged on purchases depends on the seller, the type of product bought and the shipping destination.

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