Hello! I am going to attend an American University this fall. I am planning to buy a laptop at the campus store(probably the macbook pro), and was wondering if the price tag of $1799(educational discount) is after tax or before tax? If it is before tax, does each state have its own sales tax or is it common throughout the US?
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Sales Tax?
- Thread starter solaris7
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it's before tax, and sales tax varies by state. some states, like oregon, don't even have state sales tax.
New Hampshire doesn't have sales tax as well. Depending on how much you purchase, it may be worth a trip to either Oregon or New Hampshire. Another thought: have someone you know who lives in one of these states to purchase the item for you through the edu store and then have him/her ship the item to you!
Tax can vary even throughout a state.
For example, in Cincinnati, we added a .25% sales tax for eight years (IIRC) through a vote for the stadiums of the Cincinnati Bengals and Reds.
For example, in Cincinnati, we added a .25% sales tax for eight years (IIRC) through a vote for the stadiums of the Cincinnati Bengals and Reds.
some states have sales tax holidays too, i know that Massachusetts and DC are having one in August. Sates usually do them around back to school.
Sometimes they apply a limit on what you can buy. Ex. I believe DC's is tax exempt only on clothes and shoes under $125(or somewhere around there). So you couldn't buy a new Mac there but I believe the one in Mass is a little more generous you would be able to buy one there.
If you have family or friends in the areas it would be cool of them to hook you up. I live in NJ so I'd save $140 on a $2,000 purchase.
Sometimes they apply a limit on what you can buy. Ex. I believe DC's is tax exempt only on clothes and shoes under $125(or somewhere around there). So you couldn't buy a new Mac there but I believe the one in Mass is a little more generous you would be able to buy one there.
If you have family or friends in the areas it would be cool of them to hook you up. I live in NJ so I'd save $140 on a $2,000 purchase.
Tax varies slightly within a state, but not much. Sales tax is usually
between 6-9%. For instance, here in Austin its 8.25%.
Thank God we don't have a state income tax though.
between 6-9%. For instance, here in Austin its 8.25%.
Thank God we don't have a state income tax though.
It varies by state (like everybody else said), but you can avoid the sales tax by buying off a different site such as MacMall. They charge sales tax I think in only 3 states. Sales tax here in NJ is at 7% and NY is I think 8.625%? Either way, its still high and I avoid it at all costs.
Just to note how this works to the OP: if you make a purchase from a company who does not have a physical location in your state, you do not pay sales tax.
Tangental Story
Not really answering the OP's question, but just to add an international flavour to the thread. Most Canadian provinces also have provincial sales tax (not Alberta). If the merchandise is being shipped out of province then the PST does not have to be paid. However, British Columbia (and probably the other provinces) expect you to voluntarily self-submit the BC PST that you would have paid had you purchased the merchandise in the province - and even have the forms available for you. I would love to know how often they get used.
Not really answering the OP's question, but just to add an international flavour to the thread. Most Canadian provinces also have provincial sales tax (not Alberta). If the merchandise is being shipped out of province then the PST does not have to be paid. However, British Columbia (and probably the other provinces) expect you to voluntarily self-submit the BC PST that you would have paid had you purchased the merchandise in the province - and even have the forms available for you. I would love to know how often they get used.
It's great isn't it? Back on topic. Maybe the thread starter could consider an Amazon.com purchase considering an edu discounted Macbook Pro with tax may be similar in price. Both Apple.com and Amazon.com offer free shipping. Of course if you wish to walk out of a physical store with the unit in hand, disregard my post.
Retail Prices in the US are almost always before taxes. Most states have a base sales tax (between 4%-8%). Then some states allow for individual counties and cities to add more sales tax on top of that. I'm originally from an area near Seattle, Washington, and the state has a minimum sales tax of 7.5%, and my county added a total of .8% (.6% for a free transit system, and .2% for the Hospital). However, in Seattle, they have added 1.6% (or more by now), some of it is to pay for transit services, stadiums, and roads. Some states, like Washington, allow for special taxes to be leveraged on certain products or services. Washington allows for extra sales taxes on rental cars or hotel rooms.
At least it is not Canada, where there is a 5% National Sales Tax (GST), then there can be provincial, county, and city sales taxes (each compounding on the other).
TEG
At least it is not Canada, where there is a 5% National Sales Tax (GST), then there can be provincial, county, and city sales taxes (each compounding on the other).
TEG
Unless you live in Washington, where since they are based there, they have to charge you sales tax.
TEG
Yeah, I do sales and use tax returns for the company I work at. We have 2 stores in Minnesota and we basically remit 2 different percentages since one is in a certain county.
I think it's very important to note that just because you don't pay tax now doesn't mean that you're not liable for it. When you prepare your own personal tax return you're asked if you have any purchases that you didn't pay tax on. The answer should be yes and you pay it here but I'd like to know how many people actually do.
On the other hand, it is your duty to mention these purchases in your next tax return and pay the same amount of tax (it just has a different name). On the other hand, most people conveniently "forget" to do that
.
The average consumer wouldn't really have to worry since they tend to target businesses, especially small businesses. Why? Because they are more likely to find errors which lead to more money for them. They won't be too concerned with my $140 in tax that I'm not paying on a one time $2,000 purchase. The person's time is worth more than that.
ah. I didnt know that, thanks for pointing that out. I was under the impression that any big ticket item they would have eyes out for. I will sneak a few purchases under their radar.
Of course if you happen to buy on a military installation there is no tax to pay. What you see as the price is what it will cost.
