What is Sales Tax?
It is a tax on retail purchases and the purpose of collecting tax is to fund the state and local projects including schools, roads and public safety departments.
The sales tax in the USA is governed at the state level and the rates differs from state to state. As an online shopper, you must know about the sales tax so that you can plan you shopping budget wisely.
You should aware that most listed prices in the websites don’t include sales tax because they are subject to local and sate sales taxes, depending on the location the purchases are made.
Generally there are two types of sales taxes; state sales tax and local sales tax.
State Sales Tax
The state with the highest state-level taxes is California (7.3%)
How to calculate sales tax?
The formula is:
Total item price x 1 + sales tax rate = total sales tax
For example, let’s say you are buying an item priced at $10.00 and the sales tax rate is 6%.
[$10 total item price x 1.06 = $10.60]
Check out this website to get instant USA sales taxes, simply search by zip code or state name [http://www.salestaxstates.com]
What items are taxable?
Depending on location, there are categories of sales or types of transactions are generally exempted from the sales tax such as clothing, shoes, groceries and prescription drugs.