Amazon Now Charging Sales Tax in Every State

Amazon.com now charges sales tax in every U.S. state with a statewide sales tax, according to the Institute on Taxation and Economic Policy (ITEP).

This month, America’s biggest e-tailer started collecting tax in its four last holdout states, Hawaii, Idaho, Maine, and New Mexico, bringing the total to 45.

The only exceptions are the five states with no sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska.

Amazon’s Marketplace sellers still do not collect sales tax—and reports say state revenue authorities may target them next.

Still, the new policy marks a major shift for a company that, just five years ago, only collected sales tax in five states. But its expanding network of fulfillment centers (pictured) has grown its nationwide footprint, giving it a physical presence in most states.

Jewelers of America, which is lobbying in Congress for a bill that would require online sellers to collect sales tax, hailed Amazon’s decision as “a major milestone toward leveling the playing field between online and traditional retailers.”

“That said, it’s just one step in what has been a years-long process,” said President and CEO David J. Bonaparte. “Even with Amazon’s decision, the competitive landscape remains tipped in favor of online retailers. We will continue to push until sales tax fairness becomes the law of the land.”

The biggest jewelry e-tailer, Blue Nile, only collects sales tax in New York, Washington, and Virginia.

(Image courtesy of Amazon.com)

JCK News Director


  • Alena Sandimirova

    To make online retailers collect sales tax for each state is as fair as to ask every physical store to check their customer’s ID and collect sales tax for state they’re from. I can see how it is possible for Amazon to pull it off, but if it was be required for small businesses like mine – it would take a great toll on the small online businesses in America.

    It is fair to require a sales tax from everyone based on the state where the business is located, but not for every state where orders are shipped.

  • Chris

    If anyone thinks this will “level the playing field” they are foolish. People do not shop at Amazon because there was no sales tax, and charging sales tax in states where there is no physical presence is contrary to a sales and use tax. All this will do is make it so those shopping Amazon will have less disposable income to spend at other small local businesses, and brings us one step closer to a national sales tax or VAT. Poor show.