What are the differences in sales taxes across states?

What are the differences in sales taxes across states?

Sales tax rates vary significantly by state. For example, California has one of the highest rates at 7.25%, while Delaware has no sales tax.

Are there any states that don't have a sales tax?

Yes, there are five states without a sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska.

How do local taxes affect the overall sales tax rate?

Local taxes can add to the state sales tax rate, leading to higher overall rates in certain areas. For instance, in some cities in California, the total sales tax can exceed 10%.

What items are typically exempt from sales tax?

Common exemptions include groceries, prescription medications, and certain services, but this varies by state.

How do online sales taxes work?

Online sales taxes depend on the buyer's location and the seller's nexus in that state. Many states require sales tax to be collected for online purchases.