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Pennsylvania 'Netflix Tax' Could Become an Expensive Trend

Pennsylvania will now apply its 6% sales tax to digital goods, including streaming and downloads.
Published

Cutting the cord has been the money-saving move du jour for penny-pinching bingewatchers, with services like Netflix, Hulu, Amazon Video, and — don't you dare judge me — the WWE Network giving people viable online alternatives to cable services.

But in Pennsylvania, CBS Pittsburgh reports, costs are going up across the digital board as a result of the so-called "Netflix tax."

When Sales Tax Attacks

Pennsylvania is now joining the crowd of states and cities (including Chicago and Minnesota) that have begun charging sales tax on digital goods.

This one covers the video services listed above, as well as streaming music subscriptions like Apple Music, and downloads of music, apps, and eBooks. (Magazine and newspaper subscriptions are exempt, as are digital editions of the Bible.)

SEE ALSO: With Much Less Content, Is Netflix Still Worth It?

Because the 6% tax only applies to accounts with Pennsylvania billing addresses, there are obvious, if dubious, dodges for now. But it looks more likely than ever that these taxes will soon apply in most, if not all, areas.

Readers, will this new tax affect your online streaming habits? Will you cut down on your subscriptions, or is even a taxed Netflix still the best value for you? Share your thoughts below!


Staff Writer

Alan Byrne will have to do for now. He cries a lot. Reassure him at his skillfully neglected blog, or on Twitter at @RidiculousHuman.
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8 comments
Bouncer84
Cut spending!
im4flowers
Tax and Spend idiots!
kissdadish
Comcast. Philly. It's been said already, but is there any doubt? SMH.
DeletedUser169775
@ V484 Comcast is headquartered out of Philadelphia, so yes I bet this had something to do with it. Comcast will soon the rights to your entire life! I don't think this would deter me from getting Netflix however it is disappointing to constantly be hit with new taxes in this country.
LonnieMcClure
In my state, we've been charged sales tax for Netflix for as long as I can recall. (My last billing shows $8.71 for the last month that my Netflix sub was $7.99). I don't recall being charged sales tax on any other online service, but AFAIK, Netflix still has a disc distribution center here.
V484
Isn't Comcast headquartered in PA? Coincidence?
Anthony S Jennings
@t404 Smart.
t404
Chicago has an even worse tax. Changed my billing address. No more tax.
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