Is There Tax on Amazon Prime Membership 2021? Yes, But…

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Text: Is there tax on Amazon Prime membership?

The basic Amazon Prime Membership cost is $119/year or $12.99/month in the United States. But that may not always be the case. For some Americans, the membership fee is exactly $119/year, but for many others, the actual cost may go well beyond $125/year.

So, what exactly is the reason behind such differences in pricing? Well, that brings us to one question…

Is there tax on Amazon Prime membership fee?

Yes, Amazon Prime membership fee is subject to state sales tax. But the tax is not applicable across all states in the US. Currently, 34 US states and the District of Columbia require Amazon to levy tax on Amazon Prime membership fee. For the remaining states, there is no sales tax!

Besides, the state sales tax rates also vary from one state to another. And that is why there is variation in the actual cost of amazon prime membership.

States That Levy Tax on Amazon Prime

As stated earlier, 34 US states and the District of Columbia levy sales tax on Amazon Prime membership fee. You can check out the list of these states on Amazon’s ‘Tax on Amazon Prime Page’. If there is any change in the list, it will be updated there.

But for now, Amazon Prime is subject to sales tax in the following states:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • District of Columbia
  • Florida
  • Hawaii
  • Idaho
  • Iowa
  • Kentucky
  • Louisiana
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Puerto Rico
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

For the remaining states in the US, there is no tax on Amazon Prime membership.

Do you want to get the Prime membership at a discount price?

Check out this article. Eligible users can get up to 50% off!

How Much is Amazon Prime After Tax?

For the residents of the states where no sales tax is levied, the Amazon Prime membership fee is the same as the standard membership cost, that is, $119 annually or $12.99 monthly.

Tax on Amazon Prime Membership fee, Payment information

But, for the taxable states, the cost of amazon prime membership after tax would vary from state to state due to the different sales tax rates.

For instance, the sales tax in California is 7.25%. So, the tax on Amazon Prime membership in California would be 7.25% of $119 for the annual plan, that is, around $8.6. Adding the tax to the basic price, the cost of Amazon Prime membership in California would amount to $127.6.

But again, even this may not be the exact amount as there may be local taxes as well. So, the final price may come around $130/year.

Please Note: The above calculation is just for an example. The actual sales tax may be different.

You can check the sales tax rates in different US states here.

So, that is all about tax on Amazon Prime membership. Since the tax rates vary from state to state, it is difficult to estimate exactly how much is amazon prime with tax. The best way to find it out would be to check your card statement once you are charged for the membership (Provided you are willing to take the membership in the first place).

3 thoughts on “Is There Tax on Amazon Prime Membership 2021? Yes, But…”

  1. Regarding taxes and Amazon; the “word” around is that “Amazon does NOT pay taxes” so is this simply not true (because Amazon pays sales taxes to the states that require sales tax be collected? Thanks

  2. What about tax-exempt organizations such as churches, charities, 501c-3? Are they subject to pay Amazon Prime sales tax?

    1. Hello Rhonda,
      Unfortunately, I don’t have any reliable information related to this. Please contact Amazon Customer care, they might be able to give you the correct information.

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