how much is amazon prime with tax

When you’re ready to sign up for Amazon Prime, the final price at checkout can be a little confusing. The advertised monthly or annual fee doesn’t always include the extra charges that get added. So, how much is Amazon Prime with tax? The answer depends almost entirely on where you live, as sales tax is applied differently across the country.

Let’s break down the base prices first. An Amazon Prime membership costs $14.99 per month, or you can opt for the annual plan at $139 per year. The annual plan is a better value, effectively giving you two months for free compared to paying month-to-month. But these are the prices before any potential taxes are applied.

Where Sales Tax Applies to Your Prime Membership

Whether you pay tax on your Amazon Prime subscription isn’t a universal rule. Many states now consider digital services and subscriptions, like a Prime membership, to be taxable. This means if you live in a state that taxes digital goods, you will see an additional charge on top of the base price. The tax rate is based on the sales tax rate in your specific city and state.

Estimating Your Final Prime Cost

To get a clear picture of your total cost, the best approach is to go through the first steps of signing up. Amazon will show you the final total, including any taxes, before you complete the purchase. This is the most accurate way to know exactly what you’ll pay. As a general guideline, if your local sales tax is 7%, your annual Prime fee would be about $148.73 ($139 + $9.73 in tax).

Is the Prime Membership Worth the Total Price?

When considering the value, look beyond just the cost. Your membership includes fast, free shipping on millions of items, access to Prime Video for movies and TV shows, Prime Music, and exclusive deals on shopping events. For many households, the benefits easily justify the total price, even with tax included.

In the end, the exact amount you pay for Amazon Prime with tax comes down to your location. By checking the final price during sign-up, you can make an informed decision and start enjoying all the perks with no surprises.