An update on sales tax coming from the 1st of July (Patreon)

Hello everyone,

I wanted to give you an update on some changes that we’ll be seeing which may affect some of your pledges. Due to new laws passing in several countries and US states, Patreon will be required to start charging sales tax on some pledges starting July 1st. 

I know the idea of having to pay more tax on top of everything else we pay is a sucky thing but unfortunately it is not something we can avoid. The good news is that it won't affect all of you; less than half of all patrons will be charged sales tax, and for most, the amount will be very small. For example, sales tax rates in the US range from 4% to 11%, so on a $5 pledge, that would be between 20 cents and 55 cents, so there is that to take into consideration.

Whether or not you will be charged sales tax depends on your location, and what is considered taxable there. Not every pledge is taxable, not all benefits are taxable in every location, and sometimes only a fraction of a pledge will be taxable. The money that Patreon collects as a result of these laws are paid directly to local governments.

If you’re in a location where sales tax will be required, you should expect to receive an email from Patreon with more information about this very soon, but I wanted to make sure you were aware of these changes way ahead of July 1st when they go into effect (and so won't get caught by surprise if you didn't receive said emails). 

If you have questions, you should be able to find answers here. If you still have questions, the best place to get an answer is from Patreon’s customer support team, here. 

I will continue to push to give you a good value for your pledges in the coming months ahead, which should hopefully more them make up for these new minor taxes incoming.

If you want to ask me anything about my tiers or anything else, then drop your question into the comments.

Take care and I hope you all continue to stay well.

Magnus