Will there be sales tax on an upgrade fee?

mat3thew
Member

when you upgrade to a new phone on taxes do they do it on full retail price or upgrade price

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Re: upgrade sales tax

tikibar1
Sr. Leader

Depends on the State you're in; it's determined by the State, not Verizon.

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Re: upgrade sales tax

tikibar1
Sr. Leader

Depends on the State you're in; it's determined by the State, not Verizon.

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Re: upgrade sales tax

Tidbits
Sr. Leader

Some states caught on and figure they can double dip you. Hawaii is in the process to match California on retail tax on subsidized devices. While you are paying back that subsidization you pay tax on the parts which you already paid in advance.

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Re: upgrade sales tax

Not applicable

In my state TN I pay sales tax on the subsidized price and the upgrade fee and that's it.

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Re: upgrade sales tax

Ilikemath
Member

The only two states that charge you the full retail tax on a subsidized phone are Cali and Massachusetts. I'm about 90 percent sure on this.

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Re: upgrade sales tax

Tidbits
Sr. Leader

Rhode island too I believe.  Hawaii if they pass these new tax laws Smiley Sad which a lot of us are fighting.

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