US Trends

how much tax does microsoft rewards charge

Microsoft Rewards usually doesn’t charge tax on the points themselves, but redeeming points for certain items or gift cards can still be subject to local tax rules depending on your country and what you redeem. In the Windows 10 ESU context, Microsoft has offered a free option using 1,000 Microsoft Rewards points instead of paying the $30 fee, and that points-based enrollment is described as a free enrollment path.

What this means

  • If you are asking about ordinary Microsoft Rewards redemptions, the program itself is generally a points system, not a cash purchase, so there usually is no separate “Microsoft Rewards tax” charge built in.
  • If you are asking about the Windows ESU upgrade, Microsoft’s reported options include paying $30 or using 1,000 Rewards points, with Europe noted as free in the coverage I found.

Practical takeaway

  • The amount you “pay” in Rewards is typically the points required, not tax.
  • Any tax that applies would usually come from the item being redeemed, your location, or the merchant handling the final purchase, not from Microsoft Rewards as a standalone fee.

Quick example

If you redeem 1,000 Microsoft Rewards points for Windows ESU enrollment, the reported cost is 1,000 points, not a separate tax charge.