Sales tax is a tax imposed on the sale of goods and services. It is typically a percentage of the purchase price and is added to the final cost of the product or service. The rate of sales tax varies by location, with different states and localities having their own rates. In the United States, it is not a federal tax, but rather a state and local tax. Sales tax refers to when it’s added to the sales price of a good or service and is then charged by the retailer to the end consumer. The retailer then remits the retail sale’s collected tax to the government. Tax jurisdictions only receive tax revenue when a sale is made to the end consumer.
Source: tax.thomsonreuters.com
Latest Posts in "United States"
- Larimer County Sales Tax Rate Rises to 1.05% Effective January 1, 2026
- Grand Junction Eliminates Vendor Fee: Full Sales Tax Remittance Required Starting January 1, 2026
- San Antonio Eliminates Sports Venue Tax, Updates Local Sales Tax Rates Effective January 2026
- Illinois Sales Tax: Rates, Nexus, Exemptions, and Filing Requirements for Businesses
- 2026 State Sales Tax Updates: Food, Digital Products, Nexus, and Penalties Explained
