Windows Tax

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For the glass tax imposed in Great Britain, see window tax

Some computer users use the phrase Windows Tax to describe the hidden cost of unwanted Microsoft Windows (operating system) licences when bought with certain new computers. This is a pun on the historical phenomenon, the window tax.

In most of the world, IBM PC compatible computers are often still sold only with a copy of the Microsoft Windows operating system pre-installed. Although OEMs can legally sell computers without an operating system, they are being strongarmed by Microsoft not to do so. This is due to the way that Microsoft sells its licenses.

While anyone can purchase a full license for Microsoft Windows, which would come in a box with a CD-ROM and a certificate, Microsoft provides significant discounts to OEMs who purchase OEM versions of Windows and satisfy some conditions. These conditions are said to include whether or not the computers can dual-boot with other operating systems. This system of discounts is said to be one of the reasons that BeOS failed to make significant headway in the marketplace.

Although other operating systems exist for Apple computers, the concept does not extend beyond the IBM PC platform. Many people who are using other operating systems feel offended when it is assumed that they will want to use Microsoft Windows and when they are involuntarily charged for it in the price of the machine. This is also a concern for corporate customers who already have purchased site-wide licenses for Microsoft products. They may even be required to pay for additional licenses when purchasing new computers even though they already have the licenses they need.

There have been a public protests about the Windows Tax, since February 15, 1999 which was announced the "Windows Refund Day" and a number of people from SVLUG (the Silicon Valley Linux User Group) marched to Microsoft's offices in San Mateo to protest.

As of November 2007 (2007 ? ) many manufacturers are already selling computers without any software pre-installed and issue a so-called windows refund which is either a discount towards the "Windows inclusive" price, a refund check, or a merchandise credit. However, this option is usually not advertised on manufacturers' websites and customers will typically have to order their computer by phone and explicitly ask for a windows refund.