Amazon now collects sales tax in all 45 US states that have a state sales tax, as well as Washington D.C. But "Amazon charges sales tax" doesn't mean you pay the same rate everywhere — or that all Amazon products are taxed the same way. Here's everything you need to know about Amazon and sales tax in 2026.
Does Amazon Charge Sales Tax?
Yes. Since 2017 and 2018, Amazon has been collecting sales tax in all sales-tax states following a series of agreements with state governments and the landmark 2018 South Dakota v. Wayfair Supreme Court decision. This ruling allowed states to require out-of-state sellers to collect sales tax even without a physical presence in the state.
Before 2018, many Amazon purchases were effectively tax-free for buyers in states where Amazon had no warehouse or office. Those days are long gone.
Which States Does Amazon Collect Tax In?
Amazon currently collects sales tax in all 45 states with a general sales tax:
- All US states except the 5 with no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon
- Washington D.C.
- US territories: Puerto Rico
In Alaska, Amazon collects tax only in jurisdictions that have their own local sales tax (several Alaska municipalities have local taxes even without a state tax).
What Tax Rate Does Amazon Charge?
Amazon charges the combined sales tax rate for the delivery address — meaning the state base rate plus any applicable county and city taxes. This is the same rate you'd pay at a local store. For example:
- Delivery to Chicago, Illinois: ~10.25% combined (6.25% IL state + city/county/transit taxes)
- Delivery to Miami, Florida: 7% (6% FL state + 1% Miami-Dade county)
- Delivery to Austin, Texas: 8.25% combined (6.25% TX state + 2% Austin city)
- Delivery to Portland, Oregon: 0% (Oregon has no sales tax)
Are All Amazon Products Taxed?
No. Sales tax exemptions that apply in your state also apply on Amazon. Common exemptions include:
- Groceries: In states that exempt food from sales tax (32 states), Amazon doesn't charge tax on grocery items from Amazon Fresh or Whole Foods
- Prescription drugs: Exempt in all states that have a sales tax
- Clothing: Exempt in states like Pennsylvania, New Jersey, Minnesota, and New York (with some limits)
- Digital items: Tax treatment of e-books, digital music, and streaming varies by state — some states tax digital goods, some don't
Amazon Marketplace Sellers and Tax
When you buy from a third-party seller on Amazon Marketplace, Amazon still collects and remits the sales tax on their behalf. This is required since Amazon became a "marketplace facilitator" under laws now in effect in most states. Prior to 2020, individual sellers had to handle their own tax compliance — but those laws have largely been superseded.
Amazon Business Tax Exemption
If you're a business with a valid sales tax exemption certificate, you can submit it through the Amazon Tax Exemption Program (ATEP). Once approved, Amazon will not charge sales tax on qualifying purchases for your organization. This is commonly used by:
- Non-profit organizations (501(c)(3) in the US)
- Government agencies
- Businesses purchasing for resale
- Farmers purchasing qualifying agricultural equipment
How to Calculate Tax on an Amazon Order
Amazon shows you the tax before you complete your purchase. During checkout, after entering your delivery address, the order summary will display a "Estimated tax" line based on your exact location. The rate applied will be the combined state + local rate for your delivery zip code.
To work backward from a completed order total, use our reverse sales tax calculator. Enter the total you paid, select your state, and set the local rate to match your city — you'll instantly see the pre-tax price and exact tax amount.
Amazon Prime Subscriptions and Tax
Amazon Prime membership fees are also subject to sales tax in states that tax digital services or subscription services. Currently, states including New York, Texas, and Pennsylvania apply sales tax to streaming services and digital subscriptions, meaning your Amazon Prime renewal may include tax depending on your billing address.