I am being charged 2.3% excise tax on a medical device being purchased. Is this something I must pay, just like sales tax?


Since Jan. 1, 2013, there is a 2.3% federal excise tax on the manufacture of medical devices. When a manufacturer sells a medical device, they must remit 2.3% of the purchase price to the federal government. Note that the tax is actually on the manufacturer, not the buyer. Nevertheless, the law allows manufacturers to pass the cost along to their customers (you). So yes, you must pay it. Manufacturers could pass it through disguised in the total cost, but some have chosen to break it out as a line item to build support for a repeal.
The only exemption from the tax is the manufacture of consumer-grade medical devices such as eyeglasses, contact lenses and hearing aids. Any device that will be sold to a medical institution or office is subject to the excise tax.
For more on this tax, see the TAPN article, Medical Device Excise Tax.

Have more questions? Submit a request