Asklemmy

Yes.

Let me tell you when, why, and how I learned that you need to pay attention to taxes.

I was in third grade and my class had a field trip. This was 47 years ago, so the exact details of the trip are lost to time and rusty memory. The lesson remained.

There was something that the class could purchase at the end of the day on the trip and the place only took cash and the school was not doing anything to help, except tell the kids about it and the price. Which was something like $5. I told my Mom and she handed me a $5 bill, plus a quarter, which confused my 3rd grade brain. She said to due to some strange words "sales tax, which was 5% in my state at the time. Got to school that morning and all my classmates were proud that they had their $5 bill, but none seemed to have a quarter. So I kept the presence of my quarter a secret and was a little embarrassed about it. Yes, I was young and stupid. Now I am old and stupid.

When it came time to purchase the whatsit at the end of the day, me and one other of my classmates produced a quarter to buy it. The teachers and chaperones had to cover the sales tax for the other 20 kids and they were pissed.

I went to school and learned a lesson that has stuck with me for nearly 50 years.

The whole argument of "it's cause there's so much variation in tax amount" never really made sense to me as an excuse. Like.. you'd print the labels at the store wouldn't you? So you just put the tax amount in the system for that store and print it.. the only way it makes sense is if for some reason you're shipping price tags across the country

The average American does not include taxes in prices. This is also true in Canada.

I generally assume what I'm buying will cost 10% to 20% more from taxes and/or tips getting added at checkout. I agree it doesnt make sense and seems underhanded, they could post the actual prices if they wanted to.

We just think about the base price, but the taxes. Then at checkout you're told "oh, that number you had in your head? Add 5-20% more as a surprise"

It's a terrible system, very anti consumer. You never get used to it

Oh, and it also has the fun side effect of making sure nothing ends on a dollar amount

When you say "people" you're really talking about the stores, right? The stores just put the price they charge, not the taxes which they don't get. Yes, taxes vary from state to state, but it's not like we're all going to different states every day. I know what the tax rate is in my area, and so I know to add that when I see a price in a store.

If you really mean "people" as in customers, it depends. If I'm telling someone that a store has a good price, I'll just quote the store's price. But sometimes when I'm talking about what I paid, I'll include everything "Wow, I can't believe this cart of groceries was $150..."

As someone who lives in one of the states without sales tax, i used to hate it because nothing would ever be exact change, id see a candy bar listed for $1 but actually ifa 1.05 or aomething and now Ive gotta deal with a bunch of coins. Arizona iced tea for 99c... Nah bro you still need aother 12 cents (gotta pay the bottle deposit too)

Its not as annoying now that i pay for most stuff with a card, but in still resent all the other states that force people to do math.

Whether or not I factor in tax is entirely dependent on the size of the purchase I'm making. For the vast majority of purchases I make on a daily basis, I don't think about it at all. 7% of $2.99 is negligible to me. However, if I'm making a large purchase, or if it's a purchase which I know is subject to additional taxes beyond the sales tax, then I might consider it. 7% of $2.99 may be negligible, but 7% of $29,999 is a significant amount all by its lonesome.

For most people, I'd imagine this is most common when it comes to purchasing vehicles, as those tend to carry large prices and special taxes which results in a significant increase in price. For example, I purchased a new vehicle a couple years ago for MSRP, but wound up paying several thousand dollars more than that due to various taxes and the registration fees. I didn't know exactly how much those surcharges would be (though I easily could have calculated them by visiting my state's Department of Motor Vehicles website and plugging a figure or two into their calculator) but I had a ball park idea which I could budget around. Also, I'm pretty sure the dealership I bought from provided an estimated total purchase price which included the fees for the locality it was located in. Unfortunately, most of that was irrelevant to me, as I had traveled from another state to purchase this vehicle, which illustrates the minor frustrations that an all-inclusive price tag would introduce in America.

Like, I don't think you're wrong for thinking it's odd, and yes, there are ways to fix it, but it's just such a non-issue (not to mention America's "touchy" relationship with taxation meaning these attempts to "fix" things would rapidly become politicized) that no one cares to do anything about it. As someone else said, we intuitively learn what the rough tax rate will be for our common purchases and just factor that in.

I did "tax included" when I sold stuff but it's unusual. Yes we know there is tax, I know the tax rate here and it's not difficult to calculate the total. Food, like groceries, is not taxable here.

I will say though - my husband wants a car and I keep having to remind him to gross up the price when he sends examples because on big things it is a big charge.

Usually people talk about the pre tax cost.

I have a tinfoil hat theory that the taxes are kept like that to give people a recurring, low grade, anti-tax sentiment. There are a lot of crazy idiots that don't want government to exist here, so by making people feel bad about paying taxes (instead of obscuring that by baking it into the listed price) they can win sympathy.

I think in pretax numbers and just expect the final price to be higher - how much higher I have no idea because not everything is taxed. It was a major pain in the ass when I only had cash cus I never knew how much to take with me. Now I only use credit cards so it’s much better.

people usually just say the pre tax price and everyone already knows the sales tax. Sometimes people say the total, but that’s usually for smaller items. For example:

A sandwich from a deli costs like $11 total and that’s what they’d say.

A video game costs 59.99 and people would say it’s $60, but everyone knows it’ll really be like $66.

We did a trip to the US that covered coast to coast by plane and then 5000k of driving back to the centre... And their pretend pricing sucked.

Every state we went to advertised a price, but what you actually paid varied by heaps.

Bought some clothes that were something like $700USD by the tag, and had $1000USD on hand... Which wasn't enough once they rang it up! Wtf?

Taxes aren't on the price tag, but I figure them in as I am buying stuff. Tip too if it is at a restaurant or other tip-able service.

Edit: it does provide some transparency into where your money is going (are taxes high or is the store gauging you).

We don't include the tax. You just expect what you pay at the till to be some percent more than the sum of shelf prices. It's a known number, 5% where I live except on a few untaxed items (which I should mention isn't the US, just nearby).

I've seen people discussing a cellphone offer that's like "$800 but you get $800 of bill credits over 24 months" and they would say it's a free phone. But you'd pay $800 plus tax up front and you'd not get that tax back.

Still a good deal, but it showed how many people were blind to the tax.

An extra six percent isn’t really the difference between a big purchase and a small one, so it’s pretty much just background noise for me. I know to leave some wiggle room if my budget is tight but don’t make the effort to calculate my technical maximum. Worst case scenario I get one less item than I planned.

A lot of convenience stores around me don't even have any prices shown on many items. Drives me crazy, but I guess many people are used to it? Sales tax is usually around 7% in most places I've been to, so if I know the price of an item, I know, roughly, what to expect.

Ignore it.

Sometimes I am like egh, that’s annoying and more than I expected and then carry on with buying whatever it is. But that is a more recent thing, now that am being more frugal. For like a decade I would say I never acknowledged it or thought about it.

As far as I can tell, once the question about price is asked, they will make a remark about how awful the Republicans or Democrats are (depending on their leanings).