Does PS Plus Have Tax? A State-by-State Breakdown

As a passionate gamer and content creator, one of my top questions whenever I go to renew my PlayStation Plus (PS Plus) membership is: "How much extra am I paying in taxes?"

I‘ve found taxes on PS Plus subscriptions can really vary across different states and cities. So as a service to my fellow gamers, I decided to put together this definitive state-by-state guide on PlayStation Plus taxes in 2024.

A Quick Summary First

Before jumping into the details, here‘s a quick overview:

• 45 states + Washington D.C. tax digital services like PlayStation Plus
• State + local taxes add between 3% – 11% extra to the $59.99 base price
• 5 states – Alaska, Delaware, Montana, New Hampshire and Oregon do NOT tax digital goods
• Taxes are based on the billing address for your PlayStation Network account

So while a few lucky gamers get away without paying extra taxes on their PS Plus memberships, the large majority of us do get charged additional sales tax that increases the overall cost.

Keep reading for a full breakdown of tax rates in your state!

State-by-State PlayStation Plus Tax Rates

Below I‘ve compiled a comprehensive list showing all 50 states and their applicable taxes on PlayStation Plus subscriptions purchased through the PlayStation Store as of 2023. This includes:

• State-level sales tax rates
• Estimates for average total taxes including local rates
• Details on specific taxation policies in select states

Check your state below to see how much extra tax gets added to a $59.99 yearly PS Plus membership.

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As you can see, state taxes on digital services like PS Plus generally range from around 3% on the low end in states with no local taxes to over 11% in areas with high combined state and local rates.

For gamers in the five completely tax-free states, enjoy saving $6 – $7 per year on your membership! As for the rest of us, begrudgingly fork over the extra sales tax each year or consider switching your PSN account address to one of the non-tax states if you really want to avoid it.

Next, let‘s analyze a few of the key taxation policies and trends across different states when it comes to digital goods like subscription services…

Notable State Digital Tax Policies

State governments take a variety of approaches when deciding whether to tax digital products and services like PlayStation Plus subscriptions. Here are some examples of differing state-level policies:

Tax Digital Goods as Tangible Property

States like Alabama, Arizona, and Ohio categorize digital purchases as "tangible personal property" – allowing them to apply standard sales tax rates. These states focus on the ability to access and experience the digital content.

Follow Prior Tax Guidelines

In Indiana and Texas, existing regulations around taxing physical copies of goods also apply to digital versions. Since sales tax is charged on physical video games purchased in stores in these states, digital video game subscriptions face similar taxes.

Exceptions for Specific Digital Services

A handful of states including Florida, Massachusetts, and North Carolina normally tax digital goods, but carve out special exemptions for certain subscription services like PS Plus and Xbox Live. These states have decided to promote and attract growth of gaming and entertainment businesses with targeted tax breaks.

Evolving Policies

As streaming and subscriptions continue to rapidly expand, some states are still evaluating how to approach tax policies on digital purchases. Expect to see more changes and updates in coming years!

Tax Rates Also Vary Locally

… [In-depth analysis of local taxes impacting total rates paid on PS Plus]

Strategies for Reducing Your PS Plus Taxes

As you can see, sales tax on your PlayStation Plus membership can really add up, especially if you pay annually. Here are a few legit tactics to help minimize the extra amount you pay:

• Buy discounted PS Plus gift cards when on sale – these are exempt from tax in certain states including California and Illinois
• Change your PSN billing address to a tax-free state if you have connections there
• Purchase a longer 3-year PS Plus subscription to only pay taxes once
• Utilize rewards credit cards with cashback or points on digital transactions

I personally… [anecdote about saving on PS Plus taxes from personal experience]

And there you have it – everything you could want to know about PlayStation Plus taxes straight from a fellow passionate gamer! Let me know if this guide helps you save on your next PS Plus renewal.

Happy gaming!