This article explains when sales tax is applied during checkout for a Mode Earn Club (MEC) membership purchase, which states it applies to, and common questions about tax.
States where sales tax applies
Sales tax is added to the total purchase price during checkout for residents of these states:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Tax rate varies by state, county, and city — the exact amount is calculated at checkout based on your billing address.
Why tax applies only to some states
US sales tax rules for digital subscriptions vary significantly by state. Some states tax digital services and subscriptions; others don’t. Mode Mobile collects sales tax only in the states where the state tax authority requires it for subscription services like Mode Earn Club.
If you don’t see your state listed, sales tax likely doesn’t apply to your MEC subscription. The subtotal shown at checkout is what you pay.
Common questions
Do I pay tax based on my billing address or shipping address?
MEC subscription tax is calculated based on your billing address — since MEC is a digital subscription, there’s no shipping component.
Will the tax amount change?
Tax rates can change when state or local tax laws change. Each renewal charge is recalculated based on current tax rates, so your exact amount may vary slightly from month to month.
Can I claim this tax on my own taxes?
Sales tax on personal subscriptions is generally not deductible for individuals. If you’re using MEC for a business purpose, consult your tax advisor.
I’m outside the US — do I pay tax?
International users may have VAT, GST, or equivalent tax applied depending on their country’s rules. This is separate from US sales tax.
I was charged tax but think my state shouldn’t charge it
If you’ve been charged sales tax but believe your state doesn’t require it (for example, if you’ve recently moved and your billing address is out of date), contact Mode Support at earn@modemobile.com.
Questions or assistance
If you have questions regarding sales tax on your MEC purchase or need additional support, contact Mode Earn Support at earn@modemobile.com.