Forums - General Discussion - How much tax do you Americans pay on Games on average.

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?



 

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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.



psychicscubadiver said:
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.

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 



 

China Numba wan!!

John2290 said:
psychicscubadiver said:

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.

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

I dunno. Governments add tax on top of what the company gets, but they do know that end price will affect sales. Hard to say if the companies will accept a smaller profit margin in Europe to offset the higher taxes and move more units or if they'll just apply the price increase across the board and see how the dice fall.



John2290 said:
psychicscubadiver said:

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.

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

Aren't your taxes, in general, much higher over there to pay for all the socialized stuff?

It will be a long time, if ever, before USA has those level of taxes collectively. I live in Missouri, which is on the lower side of the tax rate for US I think. People around here want to keep as much of their hard earned money as possible generally (conservative state).



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Taxes vary by state but sometimes cities can charge a special tax to pay for something. For example when a sports team builds a stadium and gets hundreds of millions in funding from the government, the government will add a tax on certain things to pay for that. Never vidya games though.

Tax here is 8.25%. So on a $59.99 game I typically pay $64 or so.



Dulfite said:
John2290 said:

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

Aren't your taxes, in general, much higher over there to pay for all the socialized stuff?

It will be a long time, if ever, before USA has those level of taxes collectively. I live in Missouri, which is on the lower side of the tax rate for US I think. People around here want to keep as much of their hard earned money as possible generally (conservative state).

Maybe your state should raise tax some more to invest into your school and driver education system.  Your state has just as bad education and drivers than Texas the state I currently reside in.



John2290 said:
psychicscubadiver said:

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.

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

Maybe you should remember where those taxes will go. We do pay more but we also have a higher standard of living than in 3rd world countries like the US.

I'm happy that we pay so much taxes in Europe and as a result are enjoying many conveniences others don't have.

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Dulfite said:
John2290 said:

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

Aren't your taxes, in general, much higher over there to pay for all the socialized stuff?

It will be a long time, if ever, before USA has those level of taxes collectively. I live in Missouri, which is on the lower side of the tax rate for US I think. People around here want to keep as much of their hard earned money as possible generally (conservative state).

Yeah, 20% on games from what I'm seeing but my film purchases and audible purchases are showing up as much less so it's the games that are particularly high and not all digital media.That's 50% to 75% more than you guys if the relies here are accurate. That's why I'm trying to figure this whole shit out, will the hike us with such high VAT when we are getting so shafted already or will they keep that 69.99 and only hike you Americans.



 

China Numba wan!!

vivster said:
John2290 said:

Is that all? So we really are getting shafted in Europe then now that the US currency is so strong. We're paying around 10 euro more after tax. Maybe they'll only target you Americans so with the price hikes since they have already, silently hiked us up over the years. 

Maybe you should remember where those taxes will go. We do pay more but we also have a higher standard of living than in 3rd world countries like the US.

I'm happy that we pay so much taxes in Europe and as a result are enjoying many conveniences others don't have.

Yes, After Covid I never appreciated how having that slight evil of socailism on the side of a republic/democracy can be so efficient and helpful, as long as it doesn't go further towards communism i'm happy to pay extra if even as insurance for when things go sideways or if it helps others out when they need a lift. I've needed that lift myself and never realised how much more of a lift it is than the US and what we get for giving that bit extra. 

But sure lets not make this political and do that nonsense with the snide remark on the US, that's bait man, c'mon. It also shows you have don't understand the classification of first, second and third world countries actually means.



 

China Numba wan!!