When you shop in the US you shouldn’t forget about the sales tax. Sales tax is a tax that is collected by the seller for the sales of goods and services. The catch is that every US state has a different sales tax rate (for example, Oregon sales tax is 0%). We will guide you through the sales tax so you understand how it works.
How Does Sales Tax Work?
“The US Stores Are Cheap,” is probably one of the first things that come to your mind when shopping in the US online stores. You are right, but remember that prices in the US stores are without sales tax!
If you buy something from the US store the sales tax is then calculated based on the address where do you want to ship the goods. So, you will see the final price right before the checkout.
Sales tax is calculated only for NEW products & services. If you buy some second-hand goods you don’t have to pay any sales tax.
The important catch here is that the sales tax is not calculated every time. If the seller has not the headquarters in California but rather in Wyoming (where the sales tax is 0%), then the sales tax may not be applied. This happens when the seller is small. Thus, make sure you always double-check the final price of the goods.
Some people also confuse sales tax with value-added tax (VAT). These taxes are different from each other. Unlike VAT, you cannot get a sales tax refund.
What Is The Sales Tax Rate For Gardena, California?
EXAMPLE: How Much Is The Sales Tax When Buying an iPhone?
Let’s say that you want to buy the iPhone 11 Pro, 64 GB version for $999. How much is the sales tax? If you order the iPhone to our Gardena, California address, the sales tax rate is 9.5%. The formula is simple:
Price of the Item × Sales Tax Rate = Sales Tax
The final price of the iPhone will be the sum of the price without the sales tax and the sales tax:
Price of the Item + Sales Tax = Final Price