The basic Amazon Prime Membership cost is $139/year or $14.99/month in the United States. But that may not always be the case. For some Americans, the membership fee is exactly $139/year, but for many others, the actual cost may go well beyond $145/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, $139 annually or $14.99 monthly.
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 $10.4. Adding the tax to the basic price, the cost of Amazon Prime membership in California would amount to $149.4.
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).
When I click on Amazon Prime Plan membership for the $14.99/monthly it has a drop-down info. about applicable tax added. When I click on the $139 yearly I get no drop-down info. about tax added to the membership fee. They are adding a tax on both. Did I miss something here or this is misleading?
Wonderful…I was just charged $151.00 for a $139.00 membership! I’m in Michigan with a 6% sales tax rate yet I was charged 8.87% NY rate? What the heck? Money laundering much?
I am paying per month in Kentucky and was charged $16.25 for the monthly fee. This is about 8.4% and my state rate is 6% (like yours). I contacted Amazon and they don’t seem to have a clue why. I think Amazon is charging the credit card fee for the transaction back to the customer which is probably around 2.4% on my card.
Same here; I just found out that they have been doing it for years! In my case, for KY, it should be 6%, but they have been charging me 8.4% since I have the Prime membership. I am in the process of correcting this, but it’s an uphill battle.
So… In addition to the Prime membership getting higher every other year, why is it that PrimeTV still has commercials, renting or buying movies and shows (even AFTER watching the first 4 out of 6 seasons) and this mess called Free-Vee on there when we are paying so much????????? Not to mention all the other extra services that are offered they conveniently do not include with the membership. I think for all that we pay annually, we should never have commercial and use of all Prime services. Am I wrong??
Just another rip-off, a fee on top of a fee for membership.
Yep, just cancelled my Prime membership after many years. This is a downward spiral of increasing costs across the board.
So, can someone explain to me why;“Amazon” is getting away with charging tax suddenly ON their Prime Memberships, but not required to specifically list what those taxes or separate charge amounts are (breakdown). Seems to be an age old tactic here, of … “ psssst.. hey if we don’t show the actual amounts, we lessen or eliminate possible questioning, or disputes, on them….”.. “They’ll just pay it knowing it’s referred to as Prime Membership taxes now..”. I am not aware of any business that can get away with that! Not showing amounts charged in taxes and yet charging them. In Amazons case, specifically regarding the Prime Membership fees (NOT for any tangible goods) for the very first time, this year.
Unbelievable! now there is a tax for a plan….. whats next?
This is the first year ever that I have been charged sales tax on my Amazon Prime membership. I wrote to my State Taxing Authority and they said it was Amazon. I wrote back with the information I got off of Amazon’s website. I’ve written the tax authority 3 times now trying to see if I should get a refund. This is just another way Amazon is passing it’s tax liability on to their consumers and it sucks. By the way, I live in Maryland and it’s not on your list above.
NSmith
2/12/2022
Is is not right that Amazon charges taxes for a plan. They say the government makes them do it but I do not pay taxes on my insurance plans. We pay taxes for items not plans… This is a big rip off.
Definitely a rip off I thought someone hacked my account smh 🤦🏾♀️ it’s madness
Same here. This is a big rip off. Where is the breakdown of taxes. Will be cancelling my Amazon account also. Screw you AMAZON!
I TOTALLY AGREE WITH YOU ON THIS
Something is definitely not right here. Sales tax is specifically for tangible items. It should not be charged on a membership fee or anything electronically streamed. Someone’s pocketing money they’re not supposed to
I get charged a different sales tax depending on which credit card I used. All credit cards have the same exact billing address, yet the tax collected on the monthly membership fee changes.
I called customer support, they don’t know why that is.
Does anybody know why changing the credit card for the payment, but not the billing address, changes the tax collected by Amazon for the prime membership fee?
I, too have noticed a difference in the tax amounts charged. But after going through my invoices for each month I also notice that the credit card used does not seem to be what is changing the tax amount. I have invoices where the same card was charged 2 different tax amounts. Another card was charged 2 different amounts. And also a third card that was also charged 2 different tax amounts. If anyone has info as to what causes this, please provide.
I am so angry that Amazon does not show the breakdown on $119.00 + $11.31 Tax= $130.31. I very much dislike there accounting method.
“Their” accounting method. 😉
Breakdown… are you ANGRY that they don’t break down state vs county tax rates??
Yes, I was charged $131.20 for renewal of membership in CA. I don’t think this is right. Amazon and the sales tax are too much. Will be cancelling.
You got off cheap. I’m in Alameda County, I got charged $155 for my membership in 2022. That’s $16 more than my actual membership!
Right, I’m in LA and was charged $152.21. For sure not renewing next year!
Yup, just got charged $152.21 in LA. I was racking my brain trying to find out what the charge was (since Amazon makes it so difficult so see these things), and realized it was for the Prime membership that was supposed to be $139 annually..
Amazon will not let me join for $119. Screen is to big to see that option. I would like to join now. If there is tax that’s ok
Just an observance, but $12.99/mo is $156 per year. $119/yr is $9.91 per month.
Of course, because you get a discount for purchasing an entire year. (By the way, “observance” should actually be “observation”) 😊
Thanks for the spelling and grammar tips Joe. It’s a thankless job but needed in a civilized society.
Sorry, but our society is no longer civilized!
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
You are confusing federal income tax with state/county sales taxes. Amazon files a federal corporate income tax return every year, and pays the amount which US tax law says it owes.
If you don’t like that, complain about the Congressmen who write the laws, not the companies which follow them.
Are you retarded? Amazon *collects* taxes and sends them to the state government. This is not the same as “paying taxes” as everyone except for you understands.
Nice choice of words. Do you know what politically correct means? Who uses the word “retarded ” these days.
No, Amazon customers now pay state sales tax on items and Prime membership, where applicable.
What about tax-exempt organizations such as churches, charities, 501c-3? Are they subject to pay Amazon Prime sales tax?
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.
Thanks
Amazon probably requires you to jump through the same hoops that brick-and-mortar businesses require you to follow.