The States That Make You Pay an Amazon Sales Tax and Clever Tips to Avoid It

Updated August 26, 2020 by Kyle
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Most Americans now have to pay sales tax when purchasing from the online giant Amazon.com. As Amazon continues to build distribution warehouses in new states, and thus have to collect sales tax from the residents of those states, this number will only increase. Here is the current list of states where Amazon collects sales tax, along with some timely tips to avoid paying online sales tax in your state.

The States That Make You Pay an Amazon Sales Tax and Clever Tips to Avoid It

The Amazon Sales Tax States

Here is an alphabetical list of all of the states that currently collect sales tax on Amazon.com purchases:

  • Alabama
  • Arizona
  • Arkansas – as of 3/01/17.
  • California
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Hawaii – as of 4/01/17.
  • Illinois
  • Indiana
  • Iowa – as of 1/01/17.
  • Kansas
  • Kentucky
  • Louisiana – as of 1/01/17.
  • Maryland – Started collecting sales tax in October of 2014.
  • Massachusetts
  • Minnesota – Started collecting tax in October of 2014.
  • Mississippi – as of 2/01/17.
  • Missouri – as of 2/01/17.
  • Nebraska – as of 1/01/17.
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma – as of 3/01/17.
  • Pennsylvania
  • Rhode Island – as of 2/01/17.
  • South Carolina – Starting in January of 2016, South Carolina residents will have to pay a sales tax on Amazon purchases.
  • South Dakota – as of 2/01/17.
  • Tennessee
  • Texas
  • Utah – as of 1/01/17.
  • Vermont – as of 2/01/17.
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming – as of 3/01/17.

I’ll keep this list updated as new states implement Amazon warehouses.

See Also: 4 Ways to Get Free Shipping at Amazon (Without Paying for Prime)

3 Clever Tricks to Avoid Online Sales Tax

So if you live in one of the above states, you’re stuck paying sales tax on Amazon purchases until the end of time. But all hope is not lost. Here are three clever ways to avoid paying online sales tax, and in many cases get free shipping and a price at or below Amazon’s.

  1. Consider Shopping at Jet.com – Are you aware of the startup Jet.com which is attempting to take a slice of the pie away from Amazon.com? While they don’t offer the same number of products, they’re priced very competitively, and currently ONLY collect sales tax in Kansas, Nevada, New Jersey, New York, and Utah. So, if you live in a state that has a relatively high sales tax, check out Jet and easily save 7-10% off your online purchase. (Update 1/06/17: Now that Walmart has bought Jet.com, they’re going to start collecting sales tax from everyone.)
  2. Shop Elsewhere Online – Find other websites that offer free shipping similar to Amazon, but don’t collect sales tax except from the single state they’re located in. A good place to start your search is with my article about all of the online retailers who offer free shipping (with no minimum order required). The list of retailers fitting the bill is over 45, and many of them are “online only” and don’t collect sales tax either. A few of the more popular sites include Shoebuy.com, Overstock.com, and even eBay which doesn’t collect tax on most of the auctions you win.
  3. Offset the Sales Tax That You Do Pay – Consider using popular cashback websites as a way to recapture the money you pay out in online sales tax. Popular sites include Ebates, TopCashBack, and BeFrugal. Essentially they work by offering you a kickback on purchases you make using their links.  For example, right now Ebates is offering users 4% back on purchases made at American Eagle.com and 6% back on anything bought from Nordstrom.com. They offer “rebates” at thousands of online retail sites and serve as a nice way to offset the sales tax that you pay.
  4. Have a Friend Forward Your Mail – Simply have a friend who lives in a state that doesn’t pay Amazon sales tax forward your mail. You can also try a MyUS mailbox.

See Also: 6 Brilliantly Slick Ways to Get Amazon Prime for Free

Ask the Reader: Any other ways to legally get around paying sales tax? Let me know in the comments below, thanks.


By Kyle James

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Krys

Amazon began collecting tax in Arkansas on March 1st 2017 :((((

Jeff

Might as well remove this article, not much left that is good at this point. Pretty much all states getting sales tax from Amazon, and Jet same and Walmart same. Not only that media report one after other said Amazon would collect just state portion in Missouri, no they are getting city and county as well. Nearly every press report was wrong. I’m done with Amazon, pay less tax driving 2 miles up road to Walmart.

metahd

Come April 2017, Hawaii residents will now be charged a sales tax, on top of our other taxes. Price of paradise? No, it’s tax hell.

Mrs. Williams

Recently noticed Amazon collecting tax on my orders! I’m in Maine.

Glenn Powell

I just made a purchase on Amazon Prime and got taxed, canceling my Prime Membership, what did they think I was paying for a membership for.

Johanna

You do not list Colorado which does require Amazon to tax purchases.

Jeff

This Article is misleading, at least for Maryland. You are required to keep track of items you purchase online from any site that does not collect the State tax and then when filing taxes you are required to pay the 6% on all those items where you did not pay when purchasing.

Joecode

Most of what I purchase through Amazon is NOT taxed because Amazon is just the middleman and the actual seller is not located in my state. All businesses must charge you sales tax IF they have locations in your state. Otherwise, it comes tax free, but local and state laws then require you to pay a USE tax on the untaxed item. Most individuals don’t and consider their purchase tax free. It isn’t really enforced or prosecuted, but be wary it CAN be prosecuted.

Davehat

A phrase comes to mind: NO TAXATION WITHOUT REPRESENTATION. If I live in California, then I have no legislator to represent me in the PA government (to oppose this sales tax). I simply won’t pay the PA sales tax. They have no juris diction over non-PA citizens

j par

If You go out of state, and You buy something, You don’t go back to the place You live, lets say Arkansas, and pay taxes again on it during tax time. So why should You have to pay state sales tax, both the sate You bought it from, and the state You live, when You order it online? They can’t say it’s a shipping across states thing, because You do the same when go out of state and buy it from a store. It is call stealing peoples hard earn money. But whoever said that the Government was honest, don’t know our Government, do they? It is just another way of doing an illegal thing! Which they have been doing for decades now. It is like buying a used car from someone that is over $5000, I believe it is, and have to pay sales tax on it to the DMV, when the sales tax had already been paid when it was bought new! Just saying!

Bargainhunterx

You may want to retitles and re do the math. New Hampshire, Delaware, Montana and Oregon’s populations do not equal 26% of the US population.

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