Each State’s Kindle Book Tax implications under Agency Model

If you’re wondering whether or not you’ll have to pay sales tax on kindle books under the Agency Model then read on.

Note that Amazon only has to pay taxes in a few states -

  • Amazon.com LLC: KS, KY, ND, NY and WA
  • Amazon Digital Services, Inc.: KY, ND, NY and WA.
  • Books for the Kindle are sold through Amazon Digital Services Inc. so that leaves us with 4 states that currently pay sales tax on Kindle Books – KY, ND, NY, and WA.

    Also Kindle ebooks are considered to be delivered to your credit card billing address. That’s the address to keep in mind when looking at the list.

    Agency Model Tax Implications in Each State 

    This information is courtesy Amazon’s official Sales Tax Help Page. Note that whether or not you pay sales tax only changes for Agency Model Publishers’ Books i.e. Hachette, Harper Collins, Simon &Schuster, and Macmillan. Penguin doesn’t yet have an agreement with Amazon. It’ll probably be added sometime soon.

    1. Alabama AL – you’ll be paying taxes on books sold by Simon & Schuster and Hachette. No taxes on books from HarperCollins and Macmillan.
    2. Alaska AK – No taxes on Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    3. Arizona AZ – you’ll be paying taxes on books sold by Simon & Schuster, Macmillan, and Hachette. No taxes on Harper Collins books.
    4. Arkansas AR – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on Macmillan
    5. California CA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on Macmillan and Hachette.
    6. Colorado CO – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    7. Connecticut CT – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    8. Delaware DE - No taxes on Simon & Schuster, HarperCollins. No taxes on Macmillan and Hachette.
    9. District of Columbia DC – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    10. Florida FL – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on Macmillan and Hachette.
    11. Georgia GA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on Macmillan and Hachette.
    12. Hawaii HI – you’ll be paying taxes on books sold by Simon & Schuster, Macmillan, and Hachette. No taxes on Harper Collins.
    13. Idaho ID – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, and Hachette.. No taxes on Macmillan.
    14. Illinois IL – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    15. Indiana IN – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    16. Iowa IA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    17. Kansas KS – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    18. Kentucky KY – No changes. Amazon already applies sales tax. You’ll pay tax on Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    19. Louisiana LA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, and Hachette. No taxes on books from Macmillan.
    20. Maine ME – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    21. Maryland MD – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    22. Massachusetts MA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    23. Michigan MI – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    24. Minnesota MN – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    25. Mississippi MS – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    26. Missouri MO – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    27. Montana MT – No taxes on Simon & Schuster, Harper Collins, Macmillan and Hachette.
    28. Nebraska NE – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    29. Nevada NV – you’ll be paying taxes on books sold by Simon & Schuster. No taxes on Harper Collins, Macmillan and Hachette.
    30. New Hampshire NH – No taxes on Simon & Schuster, Harper Collins, Macmillan and Hachette.
    31. New Jersey NJ – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    32. New Mexico NM – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    33. New York NY – Amazon already pays taxes. You’ll pay taxes on Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    34. North Carolina NC – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    35. North Dakota ND - Amazon used to pay taxes. In future you’ll pay taxes on Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    36. Ohio OH – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    37. Oklahoma OK – you’ll be paying taxes on books sold by Simon & Schuster. No taxes on Harper Collins, Macmillan and Hachette.
    38. Oregon OR – You’ll be paying taxes on Simon & Schuster. No taxes on Harper Collins, Macmillan and Hachette.
    39. Pennsylvania PA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    40. Rhode Island RI – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    41. South Carolina SC – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    42. South Dakota SD – you’ll be paying taxes on books sold by Simon & Schuster, Macmillan, and Hachette. No taxes on Harper Collins.
    43. Tennessee TN – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    44. Texas TX – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    45. Utah UT – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    46. Vermont VT – you’ll be paying taxes on books sold by Simon & Schuster, Macmillan, and Hachette. No taxes on Harper Collins.
    47. Virginia VA – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    48. Washington WA – Nothing Changes. Amazon already pays taxes in Washingon State. You’ll be paying taxes on books from Harper Collins, Simon & Schuster, Macmillan, and Hachette. 
    49. West Virginia WV – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins. No taxes on books from Macmillan and Hachette.
    50. Wisconsin WI – you’ll be paying taxes on books sold by Simon & Schuster, Harper Collins, Macmillan, and Hachette.
    51. Wyoming WY – you’ll be paying taxes on books sold by Simon & Schuster, Macmillan, and Hachette. No taxes on books from Harper Collins.

    As you can see there’s a wide variation. A few states like New York benefit as they no longer have to pay sales tax for a few publishers’ kindle books - prices though are still much higher than $9.99. On the other end we have people from several states that didn’t have to pay sales tax on kindle books now having to pay sales tax for all Agency Model publishers’ books.

    It’s yet another downside of the Agency Model and a good reason to boycott Agency Model publishers.

    3 Responses

    1. Do we know why the various publisher’s charge in each state? Was wondering if it was because of similar agency model deals with brick and mortar stores? Or more precisely, are the Barnes and Noble stores in my state indirectly causing Amazon to charge sales tax?

    2. Ah, I will be paying Sales Tax for no one. Despite the list, Oregon doesn’t have a sales tax.

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