Is Steam correctly accounting for sales tax?

[JackivalTrades]

I'm in a state that accounts for a 6% sales tax, and that also goes for digital sales. I was doing the math for a game I was penny pinching for only a little bit ago, and the percent was more akin to 8%.

Here's my math:

What I expected was a game costing 3.74 at a sale tax rate of 6% to cost 3.96 or 3.97.
What I got was a game costing 3.74 at a sales tax rate of 8% to cost 4.04 (rounded up from 4.03).

I'm asking this because when you're purchasing games in bulk, these pennies add up. Where are these percentages coming from?

[cSg|mc-Hotsauce]

They come from your states own tax laws. Some states have different taxes for digital sales.

[↑↑↓↓←→←→BASelect]

If you buy something for $1.00 you will pay $1.06. If you buy something for $100.00 you pay $106.00.

I just bought a game and at 6% sales tax i paid $31.79 which is correct. $29.99 + 6%= $31.79 which is what i was charged.

[JackivalTrades]

Originally posted by ForAGoodTimeCallJenny867-5309:

If you buy something for $1.00 you will pay $1.06. If you buy something for $100.00 you pay $106.00.

Thanks for the math lesson, but the post states that the tax was higher than the normal state sales tax. I'm asking if anyone knows how Steam is doing their calculations.

[↑↑↓↓←→←→BASelect]

Originally posted by HajimeDono:

Originally posted by ForAGoodTimeCallJenny867-5309:

If you buy something for $1.00 you will pay $1.06. If you buy something for $100.00 you pay $106.00.

Thanks for the math lesson, but the post states that the tax was higher than the normal state sales tax. I'm asking if anyone knows how Steam is doing their calculations.

Reread my edit. Steam is doing it correctly. maybe your state raised it and you didn't know about it.

[JackivalTrades]

Originally posted by cSg|mc-Hotsauce:

They come from your states own tax laws. Some states have different taxes for digital sales.

:qr:

I checked on it, and the state tax for digital sales is supposed to be the same. As far as the most recent laws are concerned.

[cSg|mc-Hotsauce]

Originally posted by HajimeDono:

Originally posted by cSg|mc-Hotsauce:

They come from your states own tax laws. Some states have different taxes for digital sales.

I checked on it, and the state tax for digital sales is supposed to be the same. As far as the most recent laws are concerned.

And which state is that?

[JackivalTrades]

Originally posted by cSg|mc-Hotsauce:

Originally posted by HajimeDono:

I checked on it, and the state tax for digital sales is supposed to be the same. As far as the most recent laws are concerned.

And which state is that?

:qr:

I mean, without doxxing myself. I choose not to disclose that info. I suppose you could check tax rates for states with 6% sales tax... if you choose.

[JackivalTrades]

Originally posted by ForAGoodTimeCallJenny867-5309:

Originally posted by HajimeDono:

Thanks for the math lesson, but the post states that the tax was higher than the normal state sales tax. I'm asking if anyone knows how Steam is doing their calculations.

Reread my edit. Steam is doing it correctly. maybe your state raised it and you didn't know about it.

Perhaps. I'll do some more deep diving. I'm glad your tax rate is going through correctly, though!

[cSg|mc-Hotsauce]

Originally posted by HajimeDono:

Originally posted by cSg|mc-Hotsauce:

And which state is that?

I mean, without doxxing myself. I choose not to disclose that info. I suppose you could check tax rates for states with 6% sales tax... if you choose.

There are a few.

And no one here will risk legal ramifications to do that to you.

[↑↑↓↓←→←→BASelect]

Originally posted by HajimeDono:

Originally posted by ForAGoodTimeCallJenny867-5309:

Reread my edit. Steam is doing it correctly. maybe your state raised it and you didn't know about it.

Perhaps. I'll do some more deep diving. I'm glad your tax rate is going through correctly, though!

I know my friend in pittsburgh pa pay's 7% sales tax because they raised the sales tax to pay for the 2 new stadiums they built 10 or so years ago. Every where else in pa i believe is still 6% according to him.

[cSg|mc-Hotsauce]

My state still can't decide so I pay 0% until I file my taxes.

[IFIYGD]

Originally posted by ForAGoodTimeCallJenny867-5309:

I know my friend in pittsburgh pa pay's 7% sales tax because they raised the sales tax to pay for the 2 new stadiums they built 10 or so years ago. Every where else in pa i believe is still 6% according to him.

That is correct. Allegheny County (which is where Pittsburgh is) pays an additional 1% in sales tax, on top of the state sales tax of 6%. (It is not due only to the sports arenas though, RAD played a big part in it).
Philadelphia county in PA pays an 8% sales tax (6% state sales tax + 2% county sales tax).

The OP may be in a state that also has varying sales tax rates due to county sales taxes, perhaps?

[Myster_Dan]

Your $3.74 game is probably a $4.99 game on sale for 25% off, right?

(4.99 * 0.06) + 3.74 = 4.04

Looks like tax might be calculated from the regular price?

Edit: My tax wasn't calculated like this the last time I bought games (Dec. 2019) - it was calculated from the discounted price. So I don't know.