How does the tab affect taxes?

  • 1
  • Question
  • Updated 4 years ago
  • Answered
Does the medium or large tab increase the tax you pay on your phone bill every month? If you put a new phone on the medium or large tab, does it reduce the amount of tax you pay upfront? (ie. If the phone is $600, and you get a $500 tab, do you pay $600 *.13 = $78 in tax, or $100 * .13 = $13 in tax?)
Photo of Brian Reynolds

Brian Reynolds

  • 72 Points

Posted 4 years ago

  • 1
Photo of Ivan

Ivan, Mobile Master

  • 96,634 Points 50k badge 2x thumb
Any upfront fee is taxed. Any monthly tab fee is taxed. Your tab balance is not taxed, unless you choose to clear your tab early.

For your example, you would pay $13 in tax. The $10 monthly tab fee is added to your monthly bill before taxes, and your bill is taxed after the fee.

The Tab L option isn't usually the best overall value due to the $10/month fee. Tab M is frequently the most economical choice over 2 years.

This conversation is no longer open for comments or replies.