this post was submitted on 27 Jul 2025
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Watching a documentary, there was aremark from the journalist on how, due to how wildly taxation on goods may vary, from area to area, in the US, most retailers do not put the full prices on the shelves and instead just tally it at checkout.

This made no sense to me, a european, as when I go to any regular shop, prices already include all taxes applicable to the product.

There are specialty stores where VAT and other taxes may not be applied on the price on the shelf but those are usually wholesellers, selling for professionals, that already know what additional taxes will be added and at which rates, at checkout.

Not having the full price you'll be paying, on display, seems very underhanded and a bad practice. The client should know how much they are going to pay from the moment they pick an item.

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[–] Canopyflyer@lemmy.world 3 points 2 days ago

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.

[–] theneverfox@pawb.social 16 points 6 days ago

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

[–] CanadaPlus@lemmy.sdf.org 6 points 6 days ago* (last edited 6 days ago) (1 children)

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).

[–] Pacattack57@lemmy.world 1 points 6 days ago (1 children)

Who could have guessed u/CanadaPlus wasn’t American!

[–] CanadaPlus@lemmy.sdf.org 1 points 6 days ago* (last edited 6 days ago)

I mean, if you read my username it should be obvious. And it comes up often enough it was worth putting it in the username. It's just that not everybody does. and I'm going against OPs expectations by answering.

[–] waitaminute@midwest.social 4 points 6 days ago

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.

[–] LordCrom@lemmy.world 1 points 6 days ago

Usually no. Taxes are different depending on where you buy. We expect there to be 5 to 9% added on at checkout.

if the price is close to the amount of cash i have on me then i might. usually sales tax is around 7-10% so if i'm in a place where it's higher that gets annoying.

[–] nucleative@lemmy.world 0 points 6 days ago

Sales taxes vary based on city, county, and state rates. They can also be waived if you, the buyer, have a reseller permit or are purchasing for a non profit.

It's not underhanded and is annoying for sellers too because they have to know a lot about sales taxes as well. They could show you the price with local taxes included but then most customers would think their prices are too high comparing to other merchants.

So the price shown on the product in a store or online is only what the merchant is selling it for. The price at the register is what the merchant is selling it for plus the taxes they have to collect (unless you're excluded for the reasons mentioned above).

The tax is a buyer obligation, not a seller obligation but sellers have to be an intermediary. So buyers should be educated about the tax laws that apply to them (in this system).

The receipt should be clearly marked so you know exactly how much went to the product and how much went to tax. You can itemize and deduct your sales taxes from your federal income taxes if you're so inclined to track it (and it's a better result than the standard deduction)

It's more complex than a VAT system but enables local jurisdictions to levy taxes to pay for various things applicable to their area.

🤷‍♂️

[–] TabbsTheBat@pawb.social 78 points 1 week ago (23 children)

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

[–] Cort@lemmy.world 1 points 6 days ago

you'd print the labels at the store wouldn't you?

No.

At least the large corporations I've worked at, no.

Price updates were printed at HQ or local distro center and shipped with the weekly shipment. Sale stickers and new isles/planograms too.

[–] dom@lemmy.ca 58 points 1 week ago

Its so they can advertise a lower price.

[–] JillyB@beehaw.org 22 points 1 week ago* (last edited 6 days ago)

There are often nation-wide or region-wide advertising campaigns that proudly display a price. If individual cities have different sales taxes, that would make it hard. Personally, I still don't find this to be a good reason. Just charge a single amount anyway and eat the costs in the high tax area. Price it in.

Edit: now that I'm thinking about it, many chain businesses are franchised. So each McDonald's (for example) is independently owned. So they couldn't just eat the cost in those areas.

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[–] iAmTheTot@sh.itjust.works 43 points 1 week ago (1 children)

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

[–] qyron@sopuli.xyz 28 points 1 week ago (4 children)
[–] fushuan@piefed.blahaj.zone 4 points 6 days ago (1 children)

That's why they feel that taxes are robbery tbh. It mentally works against them.

[–] qyron@sopuli.xyz 2 points 6 days ago
[–] can@sh.itjust.works 19 points 1 week ago (2 children)

It's inconvenient for sure. Sales tax varies so much accross North America that I guess it's easier for them to advertise that way vs. custom signs for each province/state.

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[–] LilB0kChoy@piefed.social 13 points 1 week ago* (last edited 1 week ago)

Many of us are in the habit of mentally calculating it wherever we live though.

For example, my state sales tax is 6.88%, my county has a .25% tax on top of that, and then there’s a metro area tax of 1% on top of that, my city does not impose a separate tax of their own, so total sales tax in my city is 8.13%.

When shopping we’ll do the mental math (roughly) and factor that in so it might say $39.99 + tax but I know that it’ll be a little under $44 with tax.

It’s inconvenient but, like most things, we get used to it and adapt. Also, while tax varies a lot by state, most of us don’t venture too far out of our home area so tax is roughly the same all the places we regularly go.

It would be nice to have the price listed as the price you pay but it doesn’t work as well with our current system.

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[–] ultranaut@lemmy.world 37 points 1 week ago (1 children)

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.

[–] espentan@lemmy.world 13 points 1 week ago (2 children)

As someone not used to it, I find it very annoying. Where I live the final sale price/cost to consumers is what must be advertised, by law. I remember car dealers attempted to omit delivery cost, a good while back, but that shit was shut down quick.

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[–] AFKBRBChocolate@lemmy.ca 13 points 1 week ago (12 children)

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..."

[–] leftzero@lemmy.dbzer0.com 0 points 6 days ago (1 children)

Only an American would assume that when someone says people they mean companies instead of, you know, people. 🤦‍♂️

[–] AFKBRBChocolate@lemmy.ca 1 points 6 days ago

I assumed that because of his wording. People I know don't really "name prices," businesses do. My guess was that it was the businesses that he meant, and since it was responses about businesses that he replied to, I think I was right. But, in case, I answered for regular people, too. Don't know why you have to be shitty about it.

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[–] gravitywell@sh.itjust.works 12 points 1 week ago* (last edited 1 week ago)

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.

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