I get charged with sales tax even though my credit card has an Oregon address

Hello!

Have you tried contacting your payment provider (the bank) to ask about the transaction? You can also take a look at your
Microsoft Account Order History and see if it gives you a bit more detail or information about the purchase. Try that and give us a reply back to let us know how it goes!

I just experienced this issue, having redeemed a $10 Xbox digital gift card from Microsoft Rewards.

I was trying to make the purchase through the web, and the dialog that came up asked how I wanted to pay for the rest. Unfortunately, it did not say how much the rest was, so I did not know whether the rest was $9.99 (i.e., my credit cannot be used and
sales tax is not charged), $10.61 (i.e., my credit cannot be used and sales tax is charged), or $0.61 (i.e., my credit can be used and sales tax is charged).

I contacted Xbox Live Support, and the representative thought it might be sales tax but was unsure.

We were able to determine that sales tax *is* charged, so the problem was simply that I did not have enough credit.

I live in a state without sales tax. Even after the conversion, I'm not paying any kind of tax on the purchases or memberships. If you live in a state without any sales tax, and you've been taxed on your purchase, you may need to make sure your account
has accurate information. Go to Settings --> Account --> Billing Information. Make sure you've got the right address there. Also, if the credit card you're using is billed to an address where sales tax is the norm, this may also impact its behavior when
using it for your Xbox account.

Zero percent sales tax here in oregon...

Oregon.. 499.99, no sales tax here 😎