Taxes

Question

I purchased an item on Ebay for $13 and was charged $1.60 in taxes. I live in Illinois. The tax rate around us is less than 10%. Yet I was charged 12.3%. Why is the rate so high?

bert2day · Answer

Thanks. I did not realize shipping costs were included.

myangelandmyprincess · Answer

are you account for the price of shipping with your item? Illinois would charge tax on shipping when its considered part of the value of the item...meaning you have to pay it in order to receive the item.

mr_lincoln · Answer

Hi @bert2day eBay charges the fees on both Item price and Paid shipping from you, assuming the Seller charges for shipping.