Amazon Sales Tax Collection
Amazon collects sales tax for purchases in 45 states that have sales tax. The states where Amazon does not collect sales tax are Florida, Kansas, Missouri, and Tennessee. You do not need to do anything in your Seller Central account for the states where Amazon collects tax.
Tax Rate Calculation
Amazon calculates the sales tax rate based on the district, city, county and state sales tax rates added together. This combined percentage is the Amazon sales tax rate applied to the product’s selling price.
State Sales Tax List
- 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.
Amazon’s Sales Tax Collection Process
Amazon collects and remits sales tax to almost all of the 45 states that collect sales tax. You do not have to do anything in your Seller Central account for these states. However, currently there are a few states Amazon does not yet collect and remit sales tax for: Florida, Kansas, Missouri, and Tennessee.
Tax Calculation Details
- The amount of tax charged on your order depends on factors including the following. We display an "Estimated Tax" when confirming an order. The amounts displayed as estimated tax may then be updated later when your order is finalized and completed.
- The tax rate applied to your order will be the combined state and local rates of the address where your order is delivered to or fulfilled from. For example, if you live in a state that does not impose a sales tax, you may still see tax calculated on your order if shipped to another state.
Additional Tax Information
- Besides settling sales tax dues, you must ensure proper compliance as well.
- Sellers are still responsible for paying income tax on their Amazon earnings. The amount owed depends on the seller’s total income and tax bracket. Additionally, international sellers may need to collect value-added tax (VAT) or goods and services tax (GST) depending on the country they sell to.
Refund Information
- You can get a refund if sales tax or VAT was charged incorrectly on Amazon purchases. Contact Amazon customer service with documentation to seek a refund of incorrect charges.