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How does Netflix charge you?

Netflix, the popular online streaming service, offers various subscription plans that determine how much you pay per month. The plans differ based on the number of screens you can watch Netflix on at the same time and the video quality. Here’s a look at how Netflix’s pricing works.

Netflix Subscription Plans

Netflix currently offers 3 main subscription plans in the United States:

  • Basic – $9.99 per month
  • Standard – $15.49 per month
  • Premium – $19.99 per month

The main differences between the plans are:

Plan Monthly Price Number of Screens You Can Watch On Video Quality
Basic $9.99 1 SD (480p)
Standard $15.49 2 HD (1080p)
Premium $19.99 4 HD & UHD (4K)

So the main factors that determine your monthly Netflix bill are:

  • The number of screens you can watch Netflix on simultaneously
  • The video quality (SD, HD, or UHD)

The Basic plan allows you to watch on 1 screen at a time in standard definition. The Standard plan lets you watch on 2 screens at once in high definition. And the Premium plan gives you 4 screens with HD and Ultra HD.

Do You Pay More for 4K/UHD?

Netflix’s 4K streaming comes included with its Premium plan. So you don’t have to pay anything extra or add-on to get access to Ultra HD content. As long as you’re on the Premium plan, you can watch Netflix’s original shows and licensed Ultra HD movies and TV shows.

Netflix recommends an internet connection speed of at least 25 Mbps to stream Ultra HD content without buffering issues. But as long as you have the Premium plan, you won’t pay more to watch Netflix in 4K.

What About Multiple Profiles?

Another common question is whether you have to pay more for adding multiple profiles to your Netflix account. The answer is no – additional profiles are included with all plans at no extra charge.

Each Netflix account can have up to 5 profiles. Profiles allow different people to have their own watch history, recommendations, and watch lists. You don’t pay per profile, so add as many as you need!

Do Netflix Plans Include Offline Downloads?

Downloading content to watch offline is included with all of Netflix’s current plans. There are no extra fees to download movies or shows to your mobile device when you have an active subscription.

Here are some key things to know about Netflix offline downloads:

  • Not all titles are available for download due to licensing restrictions.
  • You can have up to 100 titles downloaded on each device.
  • Downloads expire after 7 days and are then deleted.
  • You can only download on up to 4 mobile devices per account.

As long as you follow Netflix’s download limits, you can enjoy offline viewing at no extra cost with any subscription plan.

Is Netflix More Expensive for Families?

Netflix does not charge extra based on household size or number of people using an account. Whether it’s 1 person or 6 people watching, you pay the same subscription fee.

That said, larger households may find it more cost-effective to subscribe to Netflix’s Standard or Premium plans. Even though they are more expensive per month, they allow for more people to watch different streams simultaneously.

Here’s a breakdown comparing plans for bigger families:

Plan Monthly Price Who It’s Best For
Basic $9.99 Individuals or couples who primarily watch alone
Standard $15.49 Families with 2-3 members who may watch at once
Premium $19.99 Large families with 4+ members watching together

While the Premium plan costs more per month, it can actually be cheaper than multiple Basic accounts if you have a large family. Ultimately it depends on your specific viewing habits.

What About Netflix Taxes?

Some states require streaming services like Netflix to collect sales tax from subscribers. This tax is based on where your billing address is located – it’s not a Netflix fee, but rather a state tax.

Currently, Netflix collects sales tax in the following states:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

The sales tax rate varies by location – it’s typically between 4-8% of the monthly subscription cost. Make sure to factor this in if you live in one of the above states.

Can You Pay Monthly or Annually?

When you first sign up for Netflix, you are automatically billed monthly based on your chosen subscription plan. However, Netflix does give you the option to prepay annually at a bit of a discount.

The annual plans allow you to prepay for an entire year upfront, usually at a 10-15% discount compared to paying month-to-month. Here are Netflix’s current annual plans:

  • Basic Annual Plan – $95.88/year (saves $23.88 vs monthly)
  • Standard Annual Plan – $155.88/year (saves $18.88 vs monthly)
  • Premium Annual Plan – $238.88/year (saves $24 vs monthly)

The annual plans are completely optional. You can switch between annual and monthly billing at any time on the Netflix website or in the app.

Benefits of Annual Plans

  • Saves 10-15% compared to monthly price
  • Locks in lower price for 1 year
  • Don’t have to think about monthly bill

Drawbacks of Annual Plans

  • Large upfront payment
  • Can’t change plans until year is up
  • Missed savings if you cancel early

In general, the annual plans make the most sense if you know you will stay with Netflix for the full year. Just be aware that you need to pay the full amount upfront.

Can You Share a Netflix Account?

Officially, Netflix terms of service state that an account can only be shared with someone who lives in your household. However, Netflix generally allows account sharing as long as streams are not being watched simultaneously on too many devices.

Here are a few things to keep in mind with Netflix account sharing:

  • You can watch Netflix simultaneously on different devices up to the limit of your plan – 1 for Basic, 2 for Standard, and 4 for Premium.
  • If you’re not sharing within the same household, use profiles to separate watch history and recommendations.
  • The account owner retains full control and primary responsibility for any charges.
  • Don’t share login credentials outside your household, as this can lead to locked accounts.

Small-scale Netflix sharing is common, although violates the technical terms of service. Just be mindful of not abusing simultaneous streams or device limits to avoid account disruptions.

Does Netflix Offer Discounts?

Netflix rarely offers general discounts or coupon codes. However, there are a few ways you may be able to get Netflix for cheaper or free:

  • Annual plans – As mentioned above, annual plans provide a 10-15% discount compared to monthly billing.
  • T-Mobile perks – Some T-Mobile wireless plans include 1 year of free Netflix Basic or discounts on Standard and Premium plans.
  • Student deals – Students on some wireless carrier family plans may qualify for discounted Netflix prices.
  • Promo offers – Once in a blue moon Netflix may offer 1-2 months free for new subscribers. But promos are very rare.

Aside from the options above, Netflix does not provide generalized coupon codes or discounts. The subscription plans are typically static pricing.

Can You Pause Your Subscription?

Netflix does not offer an official way to temporarily pause or hold your subscription. If you want to stop being billed for a while, you have to fully cancel your account.

When you cancel Netflix, your account will remain active for the remainder of the current billing period you’ve already paid for. All your profiles and viewing history will be saved for 10 months.

If you restart your subscription within 10 months, your profiles, favorites, and recommendations will all be waiting for you when you sign back in. So you can essentially “pause” Netflix by canceling and rejoining within 10 months.

The main catch is that if you want to keep your favorites and watching history, you do have to restart before that 10 month grace period ends.

Can You Reactivate a Canceled Netflix Account?

If you cancel your Netflix subscription, you have a 10 month window to reactivate your account without losing your viewing history, recommends, and favorite shows or movies.

To restart your canceled Netflix account:

  1. Go to netflix.com and click “Sign In”
  2. Enter your email and password you used for your previous account
  3. Choose your plan and payment method to reactivate
  4. Your account preferences and watch history will be restored!

As long as you sign back in within 10 months of cancellation, you can pick up right where you left off. After 10 months, your account data is deleted from Netflix’s systems.

Does Netflix Offer a Free Trial?

Netflix no longer offers an extended free trial. They did away with free trials back in 2020. Now the only way to try Netflix is to sign up for their cheapest paid plan.

When you first sign up, Netflix does give you the option to try it out “risk free” for the first month. You can get a full refund if you cancel within your first month.

So while not technically a “free trial”, you can essentially try out Netflix for a month and get your money back if you don’t like it. Just be sure to cancel within the first 30 days.

Conclusion

At the end of the day, how much you pay Netflix comes down to three main factors:

  1. Your chosen subscription plan
  2. Whether you pay monthly or annually
  3. Any applicable sales tax based on your state

The subscription plans give you choices for number of simultaneous streams and video quality. Paying annually can save you 10-15% vs going month-to-month. And a handful of states tax Netflix subscriptions.

Aside from those variables, Netflix keeps its pricing fairly simple and consistent. The streaming service does not offer per-profile fees, offline download fees, or many discounts and promotions.

Understanding the differences between Netflix’s Basic, Standard and Premium plans is key to choosing the right plan for your needs and budget. Maximizing simultaneous streams and avoiding unnecessary plan “overkill” is the best way to get the most value from your Netflix subscription.