T-Mobile to cover the sales tax on any new smartphone with prepaid card


After making the monthly bill more straightforward, T-Mobile is now aiming to do the same with phone pricing.

Starting February 1, T-Mobile will cover the cost of sales tax on any new smartphone you buy. Specifically, T-Mo will give you 11.2 percent (11.55 percent in Puerto Rico) of your phone’s price on a prepaid MasterCard card. This offer includes ever smartphone that T-Mobile sells.

T-Mobile’s new deal will be available to both new and existing customers on a T-Mobile One or Simple Choice Unlimited 4G LTE plan. To get your new phone’s tax covered, you’ll need to buy the device on an Equipment Installment Plan (EIP) and then submit your account info and the promo code 17DEVICECREDIT on T-Mobile’s promos website. Your prepaid MasterCard card will then be mailed to you.

One other detail worth noting is that this is a limited time offer.

While T-Mobile’s offer to cover the sales tax on your phone isn’t quite as simple as the all-in T-Mobile One plan, which just builds the taxes into the cost that you see advertised, the deal does mean that it’ll be like you didn’t pay sales tax in the end. So if you’re on a T-Mobile One plan or Simple Choice Unlimited 4G LTE plan and have been thinking about upgrading to a new device, now may be the time to do it.

Source: T-Mobile

Tags: ,

  • Corey Jalette

    Cool for people on an eip plan. I have jump on demand. Where’s our taxes? Smh.

    • Andrew Singleton

      1. you didn’t pay upfront taxes or down payment, which even well qualified customers now pay. 2. you likely will not pay even half the amount in tax as an EIP customer for each device you upgrade to. 3. you enjoy 3 upgrades per year versus 1. seems fair to me.

      • Ceefu

        6 of one, half dozen of the other.

        Down payment depends on the phone. I did pay a down payment of $100 for my 64gb 6s. I did pay taxes on that $100. I do pay taxes every month as part of my lease payment.

        Yes, I can upgrade 3 times a year, however I also don’t actually ‘own’ the phone. If I want to own it, I have to complete (pay) the full lease AND pay the lease-end buy out amount. Yes, I will have to pay taxes on that amount as well.

        So we both pay, in one form or another, to either own our equipment OR be able to JoD.

        • ericdabbs

          That is the question you ask yourselves which is more important, JOD or receiving a rebate for your taxes. You can’t have your cake and eat it too.

          Keep in mind that this is just temp promo and its not permanent. I don’t know why people on JoD should be mad at all especially if they can upgrade 3 times a year.

        • Ceefu

          No, the question JoD people ask themselves is, “Do I want to pay less, own nothing, but be able to swap 3 times? Or do I want to pay more, and *own* it?”.

          Also, to clarify, I’m not concerned at all about the fair vs unfair on who is eligible for the tax rebate.

          Rather, I’m debunking the ideology that JoD people aren’t *paying* for the ability to upgrade in some form. Thus making them ineligible for this promo being “justified”.

        • Andrew Singleton

          People don’t ask themselves any questions. People don’t know what “financing,” “leasing,” “owning,” “Jump 1/2” or “Jump on Demand” mean or are. This is jargon. As a lease-to-buy program, after which the EXACT same amount is paid for any device (tax irrelevant), it’s a very difficult argument to make that JOD isn’t a clear winner.

    • MadMartigan

      JoD is a lease. No sale is made and therefore you pay no sales taxes.

      • Bonedatt

        Yes, you do. It’s not billed upfront but it’s in there every month as “state and local sales tax, lease payment”.

        • Mike

          Stop complaining you’re already allowed to get 3 new phones a year. Otherwise cancel you JOD and buy a new phone full price.

        • Ceefu

          I was stuck on JoD back before the 6s was available, in order to get the promo of only paying $15 a month. Yes, we get charged tax on the lease payments, and yes we get charged tax if we choose the buyout option at the end.

          Either way, this promo seems lukewarm at best. $77.xx off a $700 phone, which you get back separately via debit card. It’s just more pita for the customers imho. For all the accounting / paperwork magic that needs to happen for everything to flow correctly, it would have been a much better customer experience just to discount the price up front.

          Yes, to state the obvious, it’s better than nothing. But I suspect it won’t trigger a big rush of new phone purchases.

  • sayahh

    Incorrectly linked:

    The URL link is wrong and missing a hyphen; it should be https://www.t-mobile.com/promotions

    • Alex Wagner

      Thanks! It’s been taken care of.

  • SirStephenH

    I was hoping this was permanent. Sales tax really screws us.

    • Acdc1a

      Someone always has to pay it…even with these taxes included plans T-Mobile is paying on your behalf.

  • Philip

    I hope T-mobile do the buy 1 get 2nd for 50% deal which does not require adding a new line. Not now but when S8 or Note 8 comes along.

    • Walt

      Lol you wish

    • Joe

      Those deals are specifically made to add costumers.

  • Bud

    on jod you dont pay for the phone?

    • Mario Muriel

      does not apply to JOD T-Mobile is discontinuing JOD all together, existing customers can keep the plan but will not be available to qualify for any promotions, as far as I understand.

      • Bud

        but those on jod only pay jod fee not eip?thanks. if thats the case i should stayed on jod.

        • Mario Muriel

          There is no fee for JOD, the only difference is you pay the taxes monthly for your device at a standard rate based on state you live in. The only advantage of JOD is the upgrade 3 times per year, nothing else and remember if you dont have unlimited data, then most of the promos wont qualify you anyways.

        • Bud


  • JLV90

    so limited time as in before new phones are released, before the G6 and S8

    • Corey Jalette

      It might be on long enough for them. Since it’s a tax season promo should be atleast most of the tax season.

  • TylerCameron

    What about the Google Pixel?