Sales Tax

Sales tax is a tax imposed on sales transactions. Sales taxes vary depending on the state and locality where the transaction occurs.

FAQ

How is sales tax calculated?

Sales tax is calculated as a percentage of the sale price of a product or service. The percentage rate varies depending on the location, and may include state, county, and city taxes.

Where does sales tax go?

Sales tax revenue goes to the government agencies that impose the tax. The revenue may be used to fund public services such as education, transportation, and public safety.

Who pays sales tax?

In most cases, the end consumer pays sales tax when they purchase a product or service. The seller collects the tax and remits it to the government agency that imposes the tax. However, some states also require businesses to pay sales tax on purchases they make for their own use.

When is sales tax applicable?

Sales tax is typically applicable when a taxable product or service is sold to an end consumer. The tax rate and applicability may vary by state and by the type of product or service being sold.

Is sales tax state or local?

Sales tax can be both state and local. States may impose a statewide sales tax, and local governments may impose additional sales taxes on top of the state tax. The rate and applicability of sales tax may vary by location.

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