Find out which state is the cheapest place to buy the new iPhone X
iPhone X v iPhone 8
The iPhone X is being marketed as the ultimate iPhone right now, and it’s not hard to see why. Although it’s not as big as the iPhone 8 Plus and it shares pretty much the same specs as the iPhone 8, there are enough differences to make this the must-have model at the moment. But is it worth the $200 premium over the iPhone 8 Plus?
We think it is. The iPhone X is 5mm taller, 3mm wider and less than 0.4mm thicker than the iPhone 8 but it has a 5.5in rather than a 4.7in display. OK, it’s 26 grams heavier than the 8 but don’t let that weigh you down when you can unlock this phone with your face. Face ID is a feature we love because you can unlock your phone simply by looking at it. That alone is worth the extra few dollars.
The $200 difference between the iPhone X and iPhone 8 can be lowered if you do a little homework and buy your phone out of state. You don’t need us to remind you that sales tax varies from 0% to 10% across the country so why buy from your local store?
Average of 17% tax
At the moment, US cell phone users pay an average of 17 percent in federal and local taxes combined on their cell phone bills. The five states that charge their citizens the most are Washington State (18.6 percent), Nebraska (18.48 percent), New York (17.74 percent), Florida (16.55 percent), and Illinois (15.81 percent). The five that charge the least are Oregon (1.76 percent), Nevada (1.86 percent), Idaho (2.62 percent), Montana (6.00 percent), and West Virginia (6.15 percent).
These taxes can’t be avoided unless you’re willing to move to another state but you can lower the cost of the handset if you purchase it out of state.
Base sales tax
As with the state taxes for cell phone use, the base sales tax varies from state to state. Places like Oregon, Alaska, Delaware, and New Hampshire have a 0% base sales tax, whereas Tennessee, Mississippi, Indiana and California all charge 7% or more. This tax is added to the purchase price of the phone when you buy it so purchasing a phone in one of the 0% states will save you money.
So how does it work?
If you purchase a cell phone in one of the states with zero or low tax in order to save money you won’t have any difficulties using it when you get home. Your cell phone network will put your phone onto the local exchange when you sign up with them, which will give you a local number. If you’re keeping your existing number and contract, that’s even easier because you just need to change the SIM over into your new phone, which you’ll have to make sure is unlocked.
So the ultimate destination to head towards for the best price on an iPhone X is an Apple Store in one of the four states that have a 0% base sales tax rate. The base price for the phone is $999 plus local tax. For that price, you’ll get the 64GB model, which might be too much of a compromise. Why not opt for the phone in its 256GB configuration which will cost you a minimum of $1,149? Your other option is to take out a contract with the likes of Verizon or AT&T and pay for the phone gradually over a 30 month period. But you’ll get a better deal if you buy outright, and you’ll get the best deal if you can avoid purchase taxes.