- Tax is based on 7%, which is just about the U.S national average based on a quick google search.
If you’re going to include tax, you need to add it to the value of your trade-in as well. Why? Because your trade-in value is deducted from the pre-tax subtotal of your purchase, resulting in a partial refund of the sales tax. In your example, that $700 trade-in is actually worth $749.
With that being said, I got $900, cash and hassle-free, for my 12 Pro Max last year. For my use, ≈$300 (with tax) for the latest iPhone is well worth it, which is why I upgrade every year. Some people pay more than that on cable and streaming services they hardly watch (which I don’t subscribe to). I also don’t use a case, screen protector, or Care+, so I don’t need to spend money on those every year.
If T-Mobile keeps their $800 “Switch” offer through this iPhone season, I can actually make money upgrading to the 14 Pro Max.