By using this site, you agree to our Privacy Policy and our Terms of Use. Close
John2290 said:

As a European lad, the tax system in the US is kinda hard to wrap the noggin around, here in the lands of the socialised free we bundle it all in VAT as long as we aren't self employed. I've been trying to figure out parity in pricing and the US tax system is the the spanner in the cogs to figure out what next gen price increases mean for us. Do you guys pay the Tax upfront? How much and I know it's on a state by state basis and even county by county basis so lets make an example.

Here, Ghost of Sushi is releasing at a standard of 69.99 euro which currently equates to $79.60 with all tax included in value added tax or VAT. On the spot, it's done, in the deal, we pay that price and the sale is complete. PSN won't show me what the % of VAT and I'm not purchasing it to find out but someone on here calculated it would be around $58.00 with 20% tax on games in general. Which means parity, or even slight savings.

I wanna know more about this TAX system in the US to try and calculate what this extra $10 9th gen game price increase will mean for us. It's just one more thing that will keep me out of next gen, I'm not paying 79.99 as standard for games. Not fucking happening, it's already such an expensive hobby.

Maybe we will get off but if they pull this off, we aren't far behind. So, you're American tax system, please explain to a lowly Irishman. What do you pay on average for your 59.99 games? Is it always the same? Are you being extorted more than 20% or less?

Sales tax is decided on the state level. City and County level taxes are on generally based on other things however they can enact special taxes if they want. I've heard that the 'luxury tax' on alcohol is New York City is incredibly steep. Anyway, depending on where you live the sales tax generally ranges from 6-10% so on a $60 game, you pay $63.60 - $66 total. I think what surprises people is that no US store ever lists the sales tax on the price, you're just expected to know what the amount is for your state and they add it on at the register.