This rate is expected to rise to 25.5% in 2021 due to the recent US Tax law changes. Microsoft currently pays corporate federal income tax in United States at a rate of 21%. This tax rate can vary greatly depending on the nation and its taxation system. Microsoft, like any other company, is required to pay taxes according to the laws of the country in which it operates. You should consult with qualified tax professionals to determine if any taxes will apply to your Xbox purchase.
For example, when you purchase items online, your purchase may still be subject to sales tax in the state from which the product is being shipped and certain state and local taxes may apply. Delaware, Montana, New Hampshire, and Oregon do not have any statewide retail sales taxes either.ĭepending on the specifics of your purchase, though, you may be subject to other types of taxes in these states, such as use taxes or personal property taxes.Īdditionally, online purchases can still be subject to some taxes, even in these five states.
In Alaska, each purchase is subject to a local sales tax only if the purchase is made in a municipality that has chosen to impose such a tax. At the time of writing, there are only five states in the United States that do not impose any form of tax on Xbox purchases: Alaska, Delaware, Montana, New Hampshire, and Oregon.
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