You Might Have to Start Paying a "Netflix Tax" Soon

Say it ain't so.


If you live in Pennsylvania, you're going to have to start paying up when you binge-watch. CBS Pittsburgh reports that starting August 1, Netflix users in the state will have to pay an additional tax on their subscription.

The tax isn't just on Netflix, though; it's also on sites like Hulu, plus music, e-books, apps, online games, and even ringtones. If you use an account with a Pennsylvania billing address, you'll have to pay a six percent sales tax. The tax doesn't apply to charitable purchases, school books, newspaper subscriptions, or digital downloads of the Bible.

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According to, the new tax is the state's attempt to make up for a $1.3 billion hole in its budget. Cigarette smokers will also have to pay $1 more per pack as part of the overall tax hike. The digital download tax could bring in nearly $47 million to the state.

Pennsylvania isn't the only place where Netflix streamers will have to pay up. Back in September, Chicago residents sued to challenge a similar tax on online services. And that's on top of a recent price hike for many Netflix users worldwide, which even prompted its own lawsuit. But hey, Netflix is still cheaper than a cable subscription.

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