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Apple iTunes overcharging on sales tax.

I reside in Tennessee where sales tax is 9.25%. I am being charged an extra 2 cents or so in tax on an average album purchase.


Here is the most recent example. I bought Ryan Adam's iTunes Session album at the price of $7.99.


Here's the math:


$7.99 X 1.0925 = $8.729, or, rounded up, $8.73.


iTunes charged me $8.75. Why? It's an extra 2 cents and is an overcharge, no matter the small amount. I've looked at my account and this has happened on every iTunes purchase for at least 5 months. I didn't check back any farther, as obviously something is wrong, unless there is an additional tax I am not aware of.


Can anyone explain this? I don't want to think the worst about Apple, but it's hard not to calculate that 2 cents multiplied by millions is a lot of money. Hopefully, there's another explanation.

Posted on Apr 29, 2012 2:53 PM

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Question marked as Best reply

Posted on Apr 29, 2012 4:23 PM

Some places also have city sales tax and/or county sales tax (I know where I live does).


Alternatively,


iTunes Customer Service Contact - http://www.apple.com/support/itunes/contact.html

8 replies

Apr 6, 2014 9:29 AM in response to bronzewound

I have a similar problem. We live near a city but outside their limits, in an unicorporated area. Thus we should only be charged the county tax rate and not the city. Apple charges only the city ax rate. Despite numerous notes to Apple they refuse to revise their system or even refund the difference (which other large corporations will do). I do not understand their unwillingness to work with customers in this case.

Jun 6, 2014 10:01 AM in response to bronzewound

I recently noticed the overcharge on Memphis sales tax recently when I bought books as gifts. I contacted customer service and got the "check with your state for the rate" answer. I work in sales tax and know the rate...I have made MANY online purchases that were taxed correctly. It's not that much $$ for one customer, but if you put it all together it would be material. AND if they remit the "correct" amount and COLLECT the "incorrect" amount, which is the way most tax programs work (sales x rate), they may be making a little extra $$ on collecting a few cents on transactions. Frustrating.

Aug 21, 2014 5:03 AM in response to mazapan

Here's a positive update. I sent a letter via USPS to Angela Ahrendts, Apple's new retail chief, about the sales tax issue for my zip code. Several weeks later I got a call from a very polite man from Apple. He promised to have the issue corrected and gave me a credit towards another purchase. Yesterday I exercised the credit and verified that the sales tax issue with the iTunes store had been corrected.


Thanks Apple!

Apple iTunes overcharging on sales tax.

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