Alaska (However, local government taxes may still apply.) 1019, to do the following: California, Nevada, Florida are some examples, but there are several others. The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. Most people who work in states that have income tax, wind up using income tax. Sales tax on online sales varies hugely from place to place. The only state with online sales taxes that is not automatically handled by Redbubble is Arizona, but you would have to make over $100,000 USD in sales per year. Reddit's home for tax geeks and taxpayers! In Juneau, the sales tax … Delaware does not, but we don't ever have a sales tax on anything. Press question mark to learn the rest of the keyboard shortcuts. NC charges a Highway Use Tax in lieu of a sales tax on vehicle sales. The tax collected isn't always correct, but there is no way for us to be 100% sure about that in any individual case. Paying Fees on Sales Tax. I've been trying to figure this out as well with little luck (in fact, one of the unresolved posts you may have come across might have been one of mine ) I went back and forth with Redbubble Support and they were really cagey and unhelpful, and have been scouring the internet trying to figure this out because I can't really afford professional consulting atm. Additionally, many states with low sales tax have higher income taxes.. 1. Until they change the way the system works or until they allow us to limit the territories are designs are available in (so that we can avoid those that would require us to collect sales tax or limit ourselves to a select few that we are willing to register with), I won't be selling anything else. It seems like the answer is that Redbubble collects, and sends to us, some amount of sales tax in some jurisdictions. But this list is a little misleading because Alaska does allow localities to impose sales taxes, and these average 1.76%. Redbubble was not much help, so I looked up online sales tax for every US state and a few countries I have seen my merch go to (UK, Australia). Some municipalities impose local sales taxes of up to 7.85%. Aren't there no sales tax on precious metals in the following states as well? We are an independent, advertising-supported comparison service. 3. The retailer cannot file a refund claim and it cannot claim the tax charged on their return because they are not filing a return. Some states don’t have sales tax at all, meaning you can buy Apple products for exactly the sticker price. By using our Services or clicking I agree, you agree to our use of cookies. A place for Redbubble creators to showcase their work or for anyone else to share something amazing they found! Redeemable Deed Lists. While there is no sales tax in Alaska, local governments are endowed with the ability to impose taxes on certain goods and services. For instance, Kalifornsky charges a local sales tax of 3%, while Soldotna imposes a combined sales tax of 6%. By using our Services or clicking I agree, you agree to our use of cookies. Alaska . Use a professional accountant , CPA, bookkeeper, or an outsourced accounting service to track sales taxes and ensure they're collected accurately. The majority of states—45 and the District of Columbia as of 2020—impose a sales tax at the state level.Only Oregon, Montana, New Hampshire, Alaska, and Delaware don't tax sales as of 2020, but Alaska allows local counties and municipalities to levy sales taxes of their own. Trick question. Connecticut. However, five states don’t collect sales tax, and purchases sent to these states will always be tax-free, no matter how strict the tax-collecting states become.You can take advantage of this situation by using parcel forwarding services to avoid sales tax no matter where you live.. Our parcel forwarding services from Oregon let you shop from anywhere in the USA without paying sales tax. Now, it doesn’t matter if an out-of-state company has a real store in California or not, online transactions include California sales tax. First of all, you have to itemize your deductions instead of taking the standard deduction. Tax Lien Certificate Lists. At least one web search suggests a maximum tax of $475, but I cannot confirm this from an official source. The sales tax rate is 8.875% for most things on purchases. For retailers are not registered for sales tax in the ship-to state where the vendor is charging sales tax, there is no 100% great way to recover sales tax charged by vendors. It seems like most people are just pocketing the extra money they are receiving from Redbubble and assuming that they will never be pursued by the relevant authorities. Thanks to everyone who commented and helped me! Disclaimer: I am not an accountant and do not have extensive experience in tax filing. If you make 100k and you live and work in NYC, your tax rate would be over 9%. Most people are familiar with sales tax—that extra percentage stores collect from customers in many states. Florida relies on sales taxes, and its property taxes are above the national average.” 7 states with no income tax Alaska "Tax: Sales tax will be calculated during checkout where applicable" Digital product sales are DIFFERENT than physical product sales. When you process a credit card transaction, your customer’s credit card is charged for the total amount of the sale including sales tax. “Oh, no sales tax,” he said. They act like they are being helpful doing the collecting for us. eBay Inc. is registered with DRS to collect Connecticut sales tax and will collect sales tax on all taxable Connecticut sales facilitated on our site. “Districts” are cities, counties and towns. Nevada . And that's unlikely because people use the 100k to live, meaning buying things that are not taxable, such as rent. In all, 45 states and the District of Columbia have sales tax. I suppose if they brought in a whole bunch of receipts, we could add those in as well. The only state with online sales taxes that is not automatically handled by Redbubble is Arizona, but you would have to make over $100,000 USD in sales per year. So you would need to spend more than 100k on taxable goods in order for your sales tax paid to be higher than income tax paid. Any help is appreciated, and lmk if this has already been answered somewhere - thank you! Since the transaction amount is the sum of the total sale and the sales tax, you pay your processing fees on that amount. If you make 100k and you live and work in NYC, your tax rate would be over 9%. I don't know if it's worth the effort to exploit this loop hole, but if you live in a state that has 8%-10% sales tax, and you want a PS4, you can save $30 to $40 this way. Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. Keep the charged sales tax funds in separate accounts for each state, and set up automatic sales tax payments to each required state. As for what we are supposed to do with it: we are supposed to remit it to each and every individual US state, Canadian province or country of the world for which it was collected. Press J to jump to the feed. The website also notes that “Texas and Nevada have above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Effectively bringing the total value to ~$265 for a new switch. States Without a Sales Tax Alaska . Of course, most of the population doesn’t live in a state without sales tax. I have no idea how to register to pay sales tax in places overseas. “Montana plates.” Well, now I live in Montana and finally grasp the BB’s (bald bidder’s) boast. Cookies help us deliver our Services. Very nice, but you don't explain HOW B&H can afford to give everyone between an8-10% discount. The era of avoiding sales tax on online purchases may be over, but consumers may not feel much of a dent in their wallet. More:Why I support a sales tax for public safety Until you can guarantee that the car/house/auto thieves in our neighborhoods will pay for their crimes. Connecticut Department of Revenue Services - opens in new window or tab. What States Have Sales Taxes? Effective 2020, eBay is required to collect sales taxes in certain home rule cities in Colorado. Please correct me if something is wrong! That leaves out many people. (Reverse AB … It's just such a rare situation that I've never seen anyone bother to do that. Also, the terms of service state that they are acting as our agent, which means that, as the seller of note, we now have a business presence in every state, province or country where Redbubble operates a warehouse or manufacturing facility. If I buy something for $100 and the sales tax is 8%, I would normally have to pay $108. It continues to utterly baffle me that there are so many big sellers on RB and yet I can't seem to find a clear explanation for this sales tax debacle anywhere on the internet. The Tax Cuts and Jobs Act modified the deduction for state and local income, sales and property taxes. The federal GST rate is 5 percent, effective January 1, 2008. Alaska doesn’t charge a statewide sales tax, but that doesn’t mean that the state is wholly devoid of sales tax. The simplest way to purchase an Apple device without any sales tax attached to it is simply to shop in a state without sales tax. It is usually slightly better than the standard number, but totally not worth the effort. Just because a state charges tax for a physical product doesn't mean it will charge tax from an online, digital purchase. Unless you are selling huge volumes of merchandise through Redbubble, you'll probably never come close to this. For Australia and the UK, there are specific sales thresholds you must meet as well, A$75,000 and £70,000, respectively. For Australia and the UK, there are specific sales thresholds you must meet as well, A$75,000 and £70,000, respectively. Conclusion: For almost all US States that have an online sales tax, Redbubble says they collect and remit it automatically. Still, while all of these states do not impose sales tax, some of them do permit localities to levy some sales tax. The state I work in has an income tax, so the only people I see using the sales tax deduction are people who have no earned income (like retired people who are living on investments and social security) but who bought a car and you can see the sales tax paid on that receipt. the sales tax are no where to be found! Once I realized the situation, I took my designs off Redbubble and sent them a message about it. Press question mark to learn the rest of the keyboard shortcuts. You can't prorate each for the portion of time you lived in the two states; you have to pick one or the other. But if you sell your products online, you may—or may not—have similar sales-tax-collection duties. [B&H Photo] No sales Tax (Certain States) + Free Shipping. On Schedule A, where you figure your itemized deductions, you have two choices - you can deduct state and local income taxes you paid, or you can deduct sales tax paid. For the people in the handful of states who don't have a state income tax, they need to itemize their deductions first and if they do that, I'd guess almost all of them deduct the estimated sales taxes provided by the IRS. New comments cannot be posted and votes cannot be cast. I have several clients who add up their sales tax receipts. States that levy no sales tax (but have some other quirky taxes) Advertiser Disclosure. Only five states don't impose a sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. I never received any reply. I had $181 worth of credit, after buying the 3Ds i now have $6 left on the trade in card. Of course no one wants to pay more taxes. The way that Redbubble has set things up is that we are the "seller of note", which means we are responsible for collecting and remitting sales tax. If you itemize deductions on Schedule A, your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if … Bumping this thread just in case anyone else can chime in with something helpful or anyone figured something out? April 1, 2019. I have tried looking this up before, but the posts I've seen had no real resolution... what are we supposed to do about sales tax that Redbubble collects and sends to us automatically? sellers with no sales tax nexus in Oklahoma, who make more than $10,000 in aggregate sales in Oklahoma in the previous 12 calendar months, are required to either register for an Oklahoma Sales tax permit and begin collecting Oklahoma sales tax, or, under H.B. Want to pay more taxes? The others don't have sales taxes, even for online sales. This one im using, where im living now the tax its 11.5% (Or 11%), i change my billing info and buy MS credit on Amazon. Some may collect only after a certain threshold, and some may not collect at all? Looks like you're using new Reddit on an old browser. Because for the majority of people deducting their state income taxes is much better. Physical presence is no longer the only benchmark for creating sales tax nexus.More than two dozen states now have affiliate and/or click-through nexus policies in place and some states have introduced economic nexus, which bases the obligation to register, collect, and remit sales tax solely on sales revenue or transaction volume. Why don't people deduct sales tax more often? Residents of Nevada are sure to feel like they've struck the jackpot given that it has no state income tax, as well as a relatively low state-levied 5.5% sales tax. The Witcher 3, The Last of us Remastered, Uncharted 4, Doom and No Man's Sky best things on PS4. Wow, thanks so much for the explanation! All non-collecting retailers (i.e. If you own a store in a state that collects a sales tax, you must add state and local sales taxes to the customer's total bill, collect it and send it off to the local tax authority. This is my understanding based on some quick online research and a look at these places' government websites. The only states without statewide sales and use taxes are Alaska, Delaware, Montana, … The others don't have sales taxes, even for online sales. Not many of us realize that the sales tax rate is the sum of two rates: the California state sales tax rate (7.25 % in 2018) and a district sales tax rate. I will consider using a different platform and method to sell my art too. Is it because of keeping the receipts? Living in a state with an income tax, I thought no one would use the sales tax deduction, but it works out better in quite a few scenarios like when you're into AMT. It's not a huge amount, but it's not zero, either. Cookies help us deliver our Services. 3. They seem to want to shift the responsibility onto us, but: I can't determine the sales tax on items they didn't automatically collect sales tax for because we don't see customers' addresses. I would hate to have to close my account over this, but I don't want it to become a legal issue. Switch + $35 e-shop bundle for $300 Shipped. The sales tax rate is 8.875% for most things on purchases. Transactions aren’t divided into sale amount and taxes. Is there any such cap on this tax, or is it computed on the full sales price, regardless how high? So you would need to spend more than 100k on taxable goods in order for your sales tax paid to be higher than income tax paid. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. I understand the rate to be 3%. If you use the standard number, make sure it accounts for non-taxable income such as military allowances and make sure to include the sales tax paid on big items like boats and cars. By the way, it isn't just Redbubble that is doing this, it's basically all POD sites. News, discussion, policy, and law relating to any tax - U.S. and International, Federal, State, or local. “Oh no. Hybrid Lien & Deed Lists