Amazon tax collection policy has changed over the years. In the U.S., state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, a sales tax or value added tax is uniform throughout the country, and Amazon is obliged to collect it from all customers.
Many U.S. states have passed online shopping sales tax laws designed to compel Amazon.com and other e-commerce retailers to collect state and local sales taxes from its customers. Amazon.com originally collected sales tax only from five states as of 2011, but as of April 2017 collects sales taxes from customers in all 45 states that have a state sales tax and in Washington, D.C. Alabama is the highest tax rate charged by Amazon, the Alabama tax rate is 8.45%. Amazon does not collect sales taxes from Alaska, Delaware, Montana, New Hampshire, and Oregon, since those states do not have state sales taxes. Additionally, approximately half of all Amazon.com purchases are sold on the Amazon Marketplace through 3rd-party vendors, and these purchases remain free of tax.
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