What is sales tax and how does it work?

What is sales tax and how does it work?

Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is usually a percentage of the sale price.

Who is responsible for collecting sales tax?

Typically, the seller is responsible for collecting sales tax from the buyer at the point of sale and then remitting it to the government.

Are there different sales tax rates in different states?

Yes, sales tax rates can vary significantly from state to state, and some local jurisdictions may impose additional taxes.

What items are usually exempt from sales tax?

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

How can I find out the sales tax rate in my area?

You can check your state's revenue department website or use online sales tax calculators to find the current rate in your area.