Sales tax is a consumption-based levy imposed by governments on the sale of goods and services. It is typically calculated as a percentage of the purchase price and is added at the point of sale.

The responsibility for collecting and remitting sales tax often falls on the seller.

Sales tax revenue contributes to funding government services and programs at the local, state, or national level. Rates and regulations governing sales tax vary by jurisdiction and can impact consumer spending behavior and business operations.

What Is Sales Tax