Sales tax for certain states and regions coming July 1st (Patreon)

Howdy guys! Patreon creators received notice today that a new tax law is going into effect July 1st, which will enact sales tax for certain pledges and states. This sales tax is also dependent on what the local laws are for certain Patreon rewards. For example, some states will charge tax on digital goods, while others do not. 

According to estimates, less than half of patrons will be charged sales tax, and it will be quite small. Sales tax in the US ranges from 4%-11%, so for a $6 pledge the tax would be between 24 cents and 66 cents. That is, if your state or region cares to tax digital goods at all. According to what Patreon tells me, around half of states do not.

A more exhaustive breakdown of how the taxes work can be found here! Patreon will be rolling out tools for creators to further tweak how the taxes work for our specific Patreon pages, but I'm not super clear to what extent. I'll know further down the line.

If you're in a location that will be enacting this sales tax, you should be getting an email about it pretty soon. Sorry to be the bearer of annoying news! Take care and take it easy. ❤