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Glossary Finance

Sales tax

Sales tax is a percentage added to the price of goods at the point of sale, collected by the seller and passed to the government.

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In more detail

Unlike VAT (value-added tax), it is applied only at the final sale. At 8.25%, an $80 item costs $6.60 in tax, $86.60 in all. Rates differ by state and locality in the US.

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Sales Tax Calculator

Calculate US sales tax added at the register -- add tax to a pre-tax price, or back out the pre-tax price and tax amount from a known total.

See also

  • Glossary VAT (value-added tax)
    VAT is a consumption tax added to the price of goods and services at each stage of production, ultimately paid by the final consumer.
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