It's not actually 25%, but California enforces the tax on the unsubsidized 
price of the phone ($649, $749, or $849), so San Francisco sales tax on a 16MB 
iPhone 5S is $56.79. In my case, the rate was 7.75%, so just over $50.

Aron S. Spencer

> On Dec 10, 2013, at 7:27 PM, "Dave \"Farfar\" Carlson" 
> <[email protected]> wrote:
> 
> Hmmm, Even I don't pay 25% sales tax. Must have been some other costs and 
> fees involved there.
> 
> Dave Carlson
> San Francisco Bay Area semi-retired sales engineer, Farfar, musician, and 
> woodworker.
> [email protected]
> 
> ----- Original Message ----- 
> From: "Aron S. Spencer" <[email protected]>
> To: "Kevin Callahan" <[email protected]>
> Cc: <[email protected]>
> Sent: Monday, December 09, 2013 9:16 PM
> Subject: Re: Buying an iPhone 5S from an AT&T store in California: tax rate?
> 
> 
> Unfortunately, yes. California really sucks in that regard.
> Last time I upgraded, a $199 phone was $250 out of pocket because of sales 
> tax.
> 
>> On Dec 10, 2013, at 1:18 AM, Kevin Callahan <[email protected]> wrote:
>> 
>> A friend texted me from an AT&T store in California as he was just about 
>> to buy an iPhone 5S 32GB  *upgrade* at $299 for his daughter.
>> AT&T was charging $68 in tax for the $299 phone.  They said that they tax 
>> on the "retail" price, not on the upgrade price.
>> 
>> I checked my receipt for my iPhone 5S 64GB I bought via the Apple Store 
>> online back in October (I'm in Wash. state) and I paid just $37.91 in tax.
>> 
>> Is it true that in California you pay tax on the retail price when 
>> upgrading?  And is this also true when ordering online via the Apple Store 
>> if you are a California resident?
>> 
>> -K
>> 
>> 
>> 
>> 
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> 
> Aron S. Spencer
> 
> _______________________________________________
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