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06 Numbers and Powers

iTunes Gift Card: What It Is & How to Use It

Card No. 06·20274 · Updated · Standard formula, shown below

Purchase power 23.15 USD
Tax portion
1.85 USD
Result
Card amount
25 USD
You entered
Tax rate
8 %
You entered
You enter
Card amount, Tax rate
You get
Purchase power, Tax portion
Rounding
2 dp

An iTunes gift card is a prepaid card that adds credit to your Apple Account, which you can spend on music, movies, TV shows, apps, games, books, and iCloud storage across Apple devices. You enter the code on the back of the card into your Apple ID balance, and the funds are immediately available to make purchases from the App Store, iTunes Store, and Apple Books. This article explains how these cards work, where they can be used, how to redeem them, and answers common questions about balances, restrictions, and alternatives.

Formula

The calculator above works out how much actual store credit you get from a gift card after sales tax is deducted at checkout. The formula is:

Purchase power = Card amount ÷ (1 + Tax rate ÷ 100)

Where:

  • Card amount – the face value of the iTunes gift card in USD (e.g., $25, $50, $100).
  • Tax rate – the combined state and local sales tax percentage applied to digital purchases in your jurisdiction (e.g., 8% means 0.08).
  • Purchase power – the pre-tax value of content you can buy before the tax consumes part of the balance.
  • Tax portion – the amount of the gift card that goes to tax, not to content.

Worked Example

Suppose you have a $25 iTunes gift card and your local sales tax is 8%. Using the default values:

  1. Convert the tax rate to a decimal: 8 ÷ 100 = 0.08.
  2. Add 1 to the decimal: 1 + 0.08 = 1.08.
  3. Divide the card amount by that number: 25 ÷ 1.08 = 23.148…
  4. Round to two decimals: $23.15 of content you can buy.
  5. Subtract that from the card amount to find the tax: 25 − 23.15 = $1.85.

So with a $25 card and 8% tax, you can purchase $23.15 worth of songs, movies, or apps, and $1.85 goes to tax. The calculator gives the same result instantly.

What Is an iTunes Gift Card Exactly?

An iTunes gift card is a physical plastic card or a digital code (sent by email) that loads funds onto your Apple Account. Despite the name, it is not limited to the iTunes Store app. Apple rebranded its storefronts over the years, so the same balance works on the App Store, Apple Music, Apple TV, Apple Books, and for iCloud+ storage plans. The card is sold in fixed denominations – commonly $10, $15, $25, $50, and $100 – and has no expiration date once redeemed.

Apple also sells a separate “Apple Gift Card� that works for hardware purchases at Apple Stores and online. The iTunes card is specifically for digital content and subscriptions. If you try to use an iTunes card to buy a physical iPhone or Mac, it will not work; the Apple Gift Card is the one for that.

How to Redeem an iTunes Gift Card

Redeeming is straightforward and takes less than a minute. The exact steps vary slightly by device:

  • On iPhone or iPad: Open the App Store app, tap your profile icon (top right), tap “Redeem Gift Card or Code,â€� then either scan the back of the card with the camera or type the 16-digit code manually.
  • On a Mac: Open the App Store app, click your name at the bottom of the sidebar, then click “Redeem Gift Card or Code.â€�
  • On a PC with iTunes: Open iTunes, click the account menu (or the “Accountâ€� dropdown), then choose “Redeem.â€� Enter the code when prompted.
  • On the web: Go to apple.com/redeem, sign in with your Apple ID, and enter the code.

After redemption, the balance appears immediately. You can check it anytime by going to Settings → your name → “Media & Purchases� → “View Account� on iOS, or by viewing your account info in the App Store on a Mac.

Where Can You Spend the Balance?

The iTunes gift card balance is tied to your Apple ID, not to a specific device. That means you can spend it on any device signed into the same account. Common purchases include:

  • Individual songs, albums, and music videos from the iTunes Store.
  • Renting or buying movies and TV shows from the Apple TV app.
  • Paid apps and in-app purchases from the App Store.
  • E-books and audiobooks from Apple Books.
  • Apple Music subscriptions (the monthly fee is deducted from your balance first).
  • iCloud+ storage plans (again, deducted from the balance before a credit card).
  • Apple Arcade and Apple News+ subscriptions.

One important limitation: you cannot use the balance to send money to other people, buy physical goods, or pay for services like AppleCare+. Also, you cannot convert the balance back to cash. Once redeemed, the funds stay in your Apple Account until spent.

Common Problems and How to Avoid Them

People run into a few recurring issues with iTunes gift cards. Here are the most frequent ones and what to do:

  • Card not working at checkout: If your balance covers the full price including tax, the purchase goes through. If the balance is less than the total, Apple will ask for a second payment method to cover the difference. You cannot split a single purchase between two gift cards.
  • Scratched-off code: The code on the back can wear off. If that happens, contact Apple Support with the card’s serial number (also on the back) and proof of purchase, if you have it. Apple may be able to look up the code.
  • Wrong region: iTunes gift cards are region-locked. A card purchased in the US can only be redeemed on a US Apple ID. If you try to redeem it on an account from another country, you will get an error. You must use the card in the country where it was bought.
  • Scams: Apple never asks for gift card codes over the phone, by email, or in a text message. If someone claims to be from the IRS, a utility company, or “Apple Supportâ€� and demands payment in iTunes cards, it is a scam. Legitimate businesses do not accept iTunes cards as payment for bills or taxes.

Comparing iTunes Gift Cards with Other Options

Apple now sells several types of prepaid cards, and the differences confuse people. Here is a quick breakdown:

  • iTunes Gift Card: For digital content only – music, movies, apps, books, and subscriptions. Cannot buy hardware.
  • Apple Gift Card: Can be used for both digital content and physical products at Apple Stores, the Apple online store, and the App Store. It is the more flexible option if you might want an accessory or a new device.
  • App Store & iTunes Gift Card: This is the same as the iTunes gift card; Apple has used both names on packaging over the years. The functionality is identical.

If you are buying a gift for someone who only uses Apple services, an iTunes card is fine. If you want the recipient to have the option of buying a case or a charger, get the Apple Gift Card instead. Both are sold at the same face values.

Safety and Security Tips

Gift cards are a favorite target for scammers because they are untraceable and non-refundable once the code is revealed. Follow these rules to stay safe:

  • Only buy cards from trusted retailers – either directly from Apple or from major stores like Target, Walmart, or Best Buy. Avoid third-party marketplaces where codes may be tampered with.
  • Never share the code on the back with anyone unless you are redeeming it yourself. Treat it like cash.
  • If you are selling or trading a gift card online, only do so through a reputable platform that holds the buyer’s payment until the code is verified. Even then, there is risk.
  • Check the packaging for signs of tampering before buying. A scratched-off code on a sealed card is a red flag.

If you believe you have been scammed, report it to the Federal Trade Commission (FTC) at reportfraud.ftc.gov and contact Apple Support immediately. Apple cannot always refund the balance, but reporting helps law enforcement.

Frequently Asked Questions

Can I use an iTunes gift card to buy an iPhone?

No. iTunes gift cards are strictly for digital content and subscriptions. To buy hardware, you need an Apple Gift Card, which works on the Apple Store and at Apple retail locations. The two cards are not interchangeable.

Do iTunes gift cards expire?

No. Once redeemed into your Apple Account, the balance does not expire. However, some states have laws that require gift card issuers to turn over unspent balances to the state after a period of inactivity (usually 2–5 years), so it is best to use the balance within a year or two.

Can I combine two iTunes gift cards for one purchase?

No, not directly. Apple does not allow you to combine multiple gift card balances into a single transaction. If your purchase costs more than one card’s balance, you must pay the difference with a credit card or another payment method. You can, however, redeem multiple cards into your account and they all add to the same total balance.

What if my iTunes gift card code is scratched off?

Contact Apple Support. They will ask for the card’s serial number (printed on the back) and possibly a photo of the card and your receipt. If the card was legitimately purchased, Apple can often retrieve the code from their records.

Can I use an iTunes gift card in another country?

No. iTunes gift cards are tied to the country where they were purchased. A US card will only redeem on a US Apple ID. If you move or travel, you must buy a card in your current App Store region.

Is there any way to get cash from an iTunes gift card?

No. Once redeemed, the balance can only be spent on Apple digital content. You cannot transfer it to a bank account, PayPal, or another person. Some third-party sites buy unwanted gift cards at a discount, but this is risky and generally not recommended.

Related

Formula used
in t | Card amount | USD | 25 | 1 | 500
in p | Tax rate | % | 8 | 0 | 100
out b | Purchase power | USD | t / (1 + p/100) | 2
out tax | Tax portion | USD | t - t / (1 + p/100) | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.

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