This is a common question for consumers when purchasing tickets on Ticketmaster. The short answer is that Ticketmaster fees typically do not include sales tax. However, the full breakdown of Ticketmaster fees and taxes can be complicated, as it varies based on the event, venue location, and other factors.
Ticketmaster Fees Overview
When you purchase tickets on Ticketmaster, there are usually a number of different fees that are added on top of the base ticket price. Here are some of the common fees charged by Ticketmaster:
- Service fee – This is Ticketmaster’s charge for using their service to purchase tickets. The amount varies based on the event.
- Order processing fee – This is a fee to process the ticket order, typically around $5 per ticket.
- Facility charge – This is a fee that goes to the venue hosting the event. The amount varies by venue.
- Shipping fee – If tickets are shipped, there is a fee for delivery, often around $15-$25.
- Convenience charge – This is sometimes added for the convenience of purchasing tickets online or over the phone.
There may also be some event-specific fees depending on the show. The amount of fees can really add up, often adding 25% or more to the base ticket price.
Do Ticketmaster Fees Include Tax?
The Ticketmaster fees themselves do not include any sales tax. All of the Ticketmaster fees are added up and then sales tax is calculated and added on top of the fees at checkout. This means you pay sales tax on the base ticket price plus all of the Ticketmaster fees.
The sales tax rate you pay is determined by the tax laws in the state where the event venue is located. Sales tax rates vary considerably by location, ranging anywhere from 0% to over 10% depending on the state and municipality.
For example, if an event is happening in a state with a 8% sales tax rate and your ticket price is $100 with $20 in Ticketmaster fees, you would be charged $8 in sales tax on the full $120 ticket amount ($100 base price + $20 fees). So the total ticket cost would be $128, with $8 of that being sales tax.
Estimating Your Total Ticket Cost
Because Ticketmaster adds on so many fees that are variable and the sales tax rate depends on the event location, it can be hard to estimate exactly how much your full ticket price will be.
As a rough guide, you can expect to pay about 20-25% more than the listed ticket price when all Ticketmaster fees and sales tax are included. However, the exact fees and tax rate for your event may be higher or lower.
Your best bet is to go through the Ticketmaster purchase process up until the point where you can view the full breakdown of fees and final total. This will show you an itemized list of every fee being charged for that specific event and location, along with the sales tax due. Then you can decide if the total ticket cost works for your budget before completing the purchase.
Ways to Reduce Ticketmaster Fees
If you want to avoid some of the fees that Ticketmaster charges, here are a few tips:
- Buy tickets directly from the venue box office if possible. This avoids most of Ticketmaster’s processing fees.
- See if there are any ticket presales through fan clubs or credit cards that waive fees.
- Consider reseller sites like Stubhub that include fees upfront in advertised ticket prices.
- Buy season ticket packages or bundled events, which sometimes have lower fees per ticket.
- Go for cheaper general admission or restricted view seats that have lower fees.
Even if you go through these options, you will still have to pay the sales tax calculated based on the final ticket price. But avoiding some of the Ticketmaster service charges can help reduce the total cost.
Added Fees for Ticket Resales
If you are buying tickets through a ticket resale platform like Stubhub, VividSeats or SeatGeek, be aware there are additional fees on top of the sales ticket price. Seller fees, buyer fees and shipping fees are commonly added onto resale tickets.
For example, Stubhub typically charges around 10-20% of the ticket price as a buyer fee and 10-20% as a seller fee. Again, sales tax applies on top of the ticket price plus all of these resale fees.
So the total price you pay for a resale ticket could be 30-50% higher than the listed price once all the fees and sales tax are added. Be sure to account for these extra costs when budgeting for a concert or sporting event you want to attend.
Are There Any Exceptions to Paying Tax on Ticketmaster Fees?
In most cases, sales tax is due on the full ticket price including all Ticketmaster fees. However, there are a few exceptions where you may be able to avoid tax on certain fees in some states:
- Shipping fees – Some states exempt shipping fees from sales tax calculations. For example, California and Virginia do not require tax to be charged on Ticketmaster’s shipping fees.
- Service fees for non-profits – In a few states like Michigan and Connecticut, reseller fees charged by nonprofit organizations are exempt from sales tax.
- Events held on Native American land – Events taking place on sovereign Native American lands are exempt from state sales taxes.
Unless the fees fall into one of those categories, expect to pay sales tax on the full ticket amount including all fees. Check your own state laws to see if any exemptions apply to certain fees.
Sales Tax Laws on Ticket Resales
If you resell an event ticket through a secondary marketplace, sales tax is handled according to the tax laws in the seller’s home state.
For example, say you originally bought a ticket to a concert happening in California. The original purchase was subject to California sales tax. Now you want to resell the ticket through Stubhub.
If you as the seller live in Texas, the resale transaction is taxed based on Texas tax laws. The buyer has to pay Texas state and local sales taxes on the ticket resale based on your location as the seller, even though the event is happening in California.
So sales tax on a ticket resale may be different than the original tax paid if the seller lives in a different state. Be aware of this when buying or selling event tickets in the secondary market.
Sales Tax on Complementary Tickets
In some cases, tickets may be provided for free, such as:
- Complimentary tickets given to VIPs or contest winners
- Free promotional tickets offered by sponsors
- Tickets included as part of a tour package
- Event tickets offered as a gift
Even if you don’t pay anything for the tickets themselves, sales tax still applies if there is a fair market value of the tickets. The tax is based on what the ticket would normally cost if it was sold.
So if you receive any type of free or complimentary tickets, expect to pay the applicable sales taxes on them based on the retail ticket value.
Tax Implications If an Event is Cancelled
If you buy a ticket but then the event ends up being postponed or cancelled, any refund you receive would not be subject to sales tax.
Refunds are not considered a retail sale, so they are exempt from sales tax even though you originally paid tax on the ticket. The venue or ticket seller is responsible for issuing a full refund without deducting the original sales tax.
For example, if you paid $100 for a ticket plus $8 in sales tax, a full $108 refund should be issued if the event is cancelled. You do not owe any sales tax on the refunded amount.
Deducting Sales Tax on Business or Charity Events
If you purchase tickets for business or charitable purposes, the sales tax on the tickets may be tax deductible. Some options include:
- Business expenses – Sales tax paid for employee entertainment or client events can often be deducted as a business expense.
- Charitable donations – Tax paid on tickets donated to a charity may be deductible as a charitable contribution.
- Reseller sales tax – Sales tax collected by a reseller may be deducted as a business expense to lower taxable income.
Be sure to save your ticket invoices and receipts as documentation. Consult a tax professional to understand how event ticket taxes apply to your specific situation.
When Sales Tax Applies to Ticket Transfers
If you need to transfer a ticket to another person without reselling it, sales tax implications depend on the situation:
- Gifting – No additional sales tax is due if you transfer a ticket as an outright gift.
- Reimbursement – If someone reimburses you for the original ticket cost, no extra sales tax is due.
- Trade – Trading tickets with someone is treated as a retail sale and applicable sales taxes apply.
So if money changes hands in any form, expect to pay sales tax on the amount just as you would with a normal ticket purchase.
Future Possibility of Taxes and Fees on Digital Tickets
Paperless digital tickets are becoming more common as mobile technology improves. With digital tickets, some states are exploring the idea of adding taxes or fees specifically related to mobile ticket transfers.
For example, a digital ticket use tax could potentially be charged on each transfer if the ticket is resold. Digital ticket fees might also be implemented to fund improvements to mobile ticketing infrastructure.
No widespread digital ticket taxes or fees have been enacted yet in the US. But it is something that could emerge down the road as mobile ticketing becomes more prevalent. Any new taxes or fees would be in addition to existing sales taxes on ticket purchases.
Case Studies on Tax for Specific Events
To illustrate how Ticketmaster sales tax is calculated for different events, here are some examples:
Case Study 1: Concert in California
- Base Ticket Price: $100
- Ticketmaster Fees: $20
- Location: Los Angeles, CA
- Sales Tax Rate: 9.5% (LA county + CA state)
Total Ticket Cost Breakdown:
Base Ticket Price | $100 |
Ticketmaster Fees | $20 |
Sales Tax (9.5% of $120) | $11.40 |
Total Ticket Cost | $131.40 |
For this concert, the buyer pays 9.5% sales tax on the $100 base price plus $20 in Ticketmaster fees. So the total ticket cost is $131.40, including $11.40 of sales tax.
Case Study 2: Football Game in New Jersey
- Base Ticket Price: $80
- Ticketmaster Fees: $25
- Location: East Rutherford, NJ (home of NY Giants & Jets)
- Sales Tax Rate: 6.625% (NJ state sales tax)
Total Ticket Cost Breakdown:
Base Ticket Price | $80 |
Ticketmaster Fees | $25 |
Sales Tax (6.625% of $105) | $6.96 |
Total Ticket Cost | $111.96 |
For this NFL game, the 6.625% NJ state sales tax is charged on the $80 base price plus $25 in Ticketmaster fees, resulting in $6.96 of tax and a total cost of $111.96.
Case Study 3: Broadway Show in New York
- Base Ticket Price: $150
- Ticketmaster Fees: $10
- Location: New York, NY
- Sales Tax Rate: 8.875% (NY state + NYC)
Total Ticket Cost Breakdown:
Base Ticket Price | $150 |
Ticketmaster Fees | $10 |
Sales Tax (8.875% of $160) | $14.20 |
Total Ticket Cost | $174.20 |
For this Broadway show, the 8.875% combined NY state and NYC sales tax is due on the $150 base ticket price plus $10 in Ticketmaster fees. That comes out to $14.20 in sales tax, making the total cost $174.20.
Frequently Asked Questions
Does sales tax apply to all Ticketmaster fees?
Yes, virtually all Ticketmaster fees are subject to sales tax based on the ticket venue location. The only exceptions are a few narrowly defined fees exempt by certain state laws.
Is sales tax charged on shipping fees for tickets?
It depends on the state. Some states exempt shipping costs from sales tax while others tax the full delivery fees. Check local laws to see if shipping is taxable.
How can I estimate the total ticket cost with fees and tax?
As a rough estimate, expect to pay 20-25% above the base listed ticket price after all Ticketmaster fees and sales tax are added. The exact fees vary based on the event.
What if I buy tickets from a ticket reseller instead of Ticketmaster?
You will still owe sales tax on the final ticket price including the seller’s fees. The tax rate is based on the seller’s home state if bought through a resale marketplace.
Can I deduct sales tax on business, charity or resale tickets?
Possibly, depending on how the tickets are used. Consult a tax advisor about deducting sales tax paid in certain situations.
What happens to sales tax if my event is cancelled?
You should receive a full refund including the original sales tax paid. Refunds are not taxed again.
The Bottom Line
In nearly all cases, Ticketmaster fees are subject to sales tax based on the event venue location. The only exceptions are a handful of narrowly defined fees exempt under certain state laws. Be prepared to pay sales tax on the full ticket price including all processing, service, delivery and convenience fees when purchasing tickets through Ticketmaster.