Amazon’s Prime Day promises big savings, but your final bill could be higher than anticipated thanks to sales taxes that vary by state, and Trump-imposed tariffs that are pushing up prices on many imported products.
Here’s what you need to know before you shop and to avoid tax surprises at checkout this year.
Prime Day 2025
This year’s Prime Day is Amazon’s longest ever, running from Tuesday, July 8, through Friday, July 11, 2025. That’s double the usual length.
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New offers can reportedly drop as often as every five minutes during peak periods, and shoppers can expect discounts on Amazon devices, tech gadgets, home goods, apparel, and more.
Amazon is also offering “Today’s Big Deals,” limited-time themed offers on top brands like Samsung, Kiehl’s, and Levi’s, with millions of items across more than 35 categories marked down for Prime members.
According to an Amazon release: “Last year’s event saw record-breaking sales and more items sold during the two-day event than any previous Prime Day event. Independent sellers — most of which are small and medium-sized businesses — who make up more than 60% of sales in Amazon’s store and help make Amazon’s wide selection possible, sold more than 200 million items during the 2024 Prime Day event.”
Some shoppers see it as Black Friday in July, with deep price cuts on electronics, home essentials, and back-to-school supplies.
How sales tax affects your Prime Day deals
While those headline prices are tempting, high sales tax can quietly add more to your final bill.
Since the U.S. Supreme Court’s 2018 South Dakota v. Wayfair decision, nearly every state now requires Amazon to collect sales tax at checkout. That’s regardless of whether Amazon has a physical presence there.
That means your local sales tax rate — ranging from under 5% in some states to close to 10% or more in parts of Alabama and Louisiana — applies to many Prime Day purchases.
- For example, if you grab a $500 laptop online and live in a place with a 9.5% sales tax, you could pay an extra $47.50 at checkout.
- The Tax Foundation reports the average combined state and local sales tax rate in the U.S. is about 7.5% as of 2025. But your actual rate depends on where you live.
- Shoppers in states with no sales tax, like Delaware, Montana, New Hampshire, and Oregon, are exempt from sales tax; however, most others should expect to pay.
This is a detail that can turn a “can’t-miss” deal into a price that’s only average once the tax is tacked on. So, before you check out, factor in your local rate to avoid sticker shock.
How tariffs can quietly raise Prime Day prices
Tariffs are another issue surrounding this year’s Prime Day deals.
Tariffs are taxes that governments impose on goods and services imported from another country. They can be a source of revenue, but can also be used as a barrier to regulate international trade and safeguard domestic industries.
Over the past months, President Donald Trump has imposed tariffs affecting a wide range of consumer products.
The on-and-off timing and amounts of these levies have meant that products arriving at U.S. ports after July 9 could have been subject to higher import taxes, especially in categories like electronics, appliances, and home goods.
- Recent reporting from the National Retail Federation found that nearly 60% of U.S. retailers expect to raise prices on imported goods if tariffs remain in place or increase.
- Some third-party sellers on Amazon have reportedly responded by limiting the number of Prime Day deals or shifting their supply chains to other countries to avoid the steepest tariffs.
- For many products, however, higher import costs are unavoidable, and those costs are often passed directly to consumers.
For more information, see What’s Happening With Trump Tariffs? and How Tariffs Work and What They Mean for You in 2025.
Amazon hasn’t issued a broad public statement on how tariffs may or may not affect Prime Day. Still, some analysts have suggested that when it comes to tariff impacts, the best deals are likely to be on inventory already in U.S. warehouses.
Shoppers looking for big-ticket items, especially electronics, could see higher prices than expected.
Still, web, product, and mobile analytics company Adobe Analytics has noted that “U.S. online sales jumped 9.9% year over year to $7.9 billion on Tuesday.”
However, some reports suggest that those first-day sales were lower than last year’s Prime Day start, perhaps due to the additional days to shop for deals this year.
Prime Day 2025 plus Target, Walmart and Best Buy: How to avoid surprises
How can you ensure you’re actually getting a good deal this Prime Day? Start by checking your local sales tax rate and consider using price-tracking tools to compare current deals with historical prices.
Not a Prime Day fan? Other major retailers are offering their own sales in July.
- For instance, Target is running “Target Circle Week,” featuring significant markdowns on home goods, electronics, and more.
- Simultaneously, Walmart is holding its “Walmart Deals” event, offering deep discounts on a wide variety of products.
- Best Buy is also competing with a major sale focused on electronics, with price cuts on laptops, TVs, and other tech gadgets.
And remember, not every Prime Day or similar offer is a must-buy. With inflation and global supply chain issues still affecting the retail sector, it’s good to read any “fine print “and avoid letting countdown timers pressure you into impulse purchases.