With consoles becoming more technologically advanced, it is not at all surprising that consoles are getting pretty pricey. The Nintendo Switch is one of the most expensive consoles Nintendo has produced (save for the Wii U), while the Xbox line of consoles has had a pretty standard price point (going up or down $100). But if you are a fan of the PlayStation, you may be wondering how much a PlayStation 5 costs. Well, we are here to examine the cost of the PS5, tax included, as well as how to get your hands on one.
There are two models of the PlayStation 5: the digital version and the standard edition. The digital version is $399.99, and the standard version is $499.99. Based on the average sales tax for the US, the total would come out to approximately $420 and $525 respectively, not accounting for shipping.
But why is it so hard to find a PS5 for less than those prices? And will it become easier any time soon?
How Much is the PS5 with Tax?
The PS5 has two different models available: the digital model and the standard model. The major difference between these two, besides weight and price, is the lack of a disc drive in the digital model. Thus, the only way you can play PS4 and PS5 games on your console is to download them from Sony’s digital storefront. The MSRP of the digital-only PS5 console is normally $399, while the disc-based PS5 normally has an MSRP of $499. These models exist to allow people who want a PS5, but both want it cheaper and do not care about a disc drive, to buy one without leaving out people who still buy physical games.
Once you take into account the sales tax, which is, on average, 5.02 percent in the US, the total cost of your PS5 should come out to approximately $420 for the digital-only version, and $525 for the standard version. There may be other fees added to this, such as if you order online and have to pay for shipping. However, if you order from a major website like Amazon.com or Best Buy, you should not expect to pay for shipping.
The important thing to know when it comes to estimating the sales tax of an item is that there is no one mandated sales tax applied nationwide. Instead, each state has the right to establish its own sales tax, which may be considerably higher or lower than another state’s. This is why some people may report getting the PS5 for slightly more or slightly less than the figures we have shown here. In this article, we will examine the lowest tax rate, and the highest tax rate, to examine potential pricing outliers.
Which state has the lowest sales tax rate?
When it comes to determining which state has the lowest sales tax rate, it’s rather easy since it’s a four-way tie between four states. These states – Oregon, Delaware, Montana, and New Hampshire – have a whopping zero percent sales tax rate, meaning that when you purchase a product in that state, the price you see is the price you pay. Thus, residents of these four states save approximately $20 and $25 respectively compared to the national sales tax rate average.
However, it is important to note that if you live in one of these states, you may have to pay the sales tax of another state if you are purchasing from a company based outside of these states. Be sure to double check the sales tax of the purchase before you checkout, as not doing so may leave you with an unpleasant surprise.
Which state has the highest sales tax rate?
However, not all states have it quite so easy, with some of them requiring you to pay significantly more money in sales tax. Multiple states require you to pay more than 9 percent of the product in sales taxes, but the one that takes the most in sales tax is Tennessee. For purchases made in the state of Tennessee, you will be expected to pay 9.55 percent of the product in sales tax, nearly 1/10 of what you are paying for the PS5 itself. Thus, the price of a PS5 after sales tax is accounted for comes out to approximately $438 for the digital-only version and $548 for the standard version.
Why is the PS5 so expensive?
There are two angles this question may come from. The first relates to the $399 and $499 MSRP. The standard version, while more expensive than the PS4 ($399) and less expensive than the PS3 ($599). Additionally, the standard version matches the price of its competitor, the Xbox Series X. However, much like the PS5, the Xbox Series X has a cheaper, discless version, called the Xbox Series S. This console is significantly cheaper, selling for only $299 (before taxes and shipping). This lets you buy it for $100 less than you would for the PS5 at MSRP.
The most likely reason why the PS5’s discless edition is more expensive is because Xbox was likely undercutting them with it. Microsoft is likely losing more money by doing this, but they have a much larger warchest and can afford it for the long term. A similar tactic was employed by Sony, who announced the PS4 originally for $399 explicitly because Microsoft announced the Xbox One for $499.
However, if you’re asking why the PS5 is so expensive typically, it’s because there is an extreme shortage of both versions. There has been a combination of high demand and low supply, both of which were influenced by the COVID-19 pandemic. This has caused some less scrupulous retailers and resellers – often referred to as scalpers – to sell them for hundreds of dollars more than they paid for it. This would not be the first console to experience such shortages and scalping, and the price usually levels out in the end.