One question I have never got an answer to with US prices is the maximum sales tax that is applied on top of an iPhone price. We discuss prices here and the pre VAT price is always suggested at British posters, but how much is an iPhone in the US, what is the final cost? Does anyone have any idea?
In the U.S., sales taxes vary by state, typically between about 4% and about 7%. There are also some areas with a local sales tax on top of the state sales tax, ranging from 0% (more) towards about 3% more. The state of California has the highest state sales tax at 7.25%. Within California, the average local sales tax adds 1.57%, yielding a combined rate of around 8.82%.
Another state- Tennessee- has the highest combined sales tax rate up at 9.55%. On the other hand, Tennessee has no state income tax, so less is taken out of Tennessee worker's paychecks vs. some surrounding states with state income taxes.
The easy comparison is VAT vs. sales taxes. In isolation like that, the one paying a VAT generally feels like they are "losing" (by paying more). However, there's all kinds of other variables in play. For example, sales taxes usually apply to food and lodging too while VAT usually excludes those. If someone's VAT is like this, every bit of food Americans buy have a tax applied and there are far more purchases of food at far greater total annual expense than iPhones.
Most Americans have ever-rising (steep) property taxes (and renters don't dodge those because the landlord builds them into ever-increasing rents). There are national and state income (and sometimes regional & city) taxes and special taxes on select activities. Etc.
Any such comparison probably needs to incorporate many more variables to judge added tax costs in one nation vs. another. What seems unfairly cheaper through one lens may be more than made up for through another. For example, if you live in a country with a relatively steep VAT, add in total cost of ownership over the life of the device. Americans pay a LOT for cellular service. On average it is $113/month per person (and yes fellow Americans, I know some of us are well below that- it's an average... which means others are well above that to make it reach that average). I've seen many posts by people in VAT countries where great cell service is substantially cheaper vs. even America's "bargain" MVNO options. Factor that in and owning a new phone may be a lot cheaper than it is in America. You simply have to include some time for your advantages to compensate to the one-time purchase disadvantage.