Sales Tax

What is sales tax?

Sales tax is a percentage added to the price of goods or services when you sell them. You collect the tax from your customer and later remit it to your state or local government. Sales tax rates and rules vary significantly by location—some states have no sales tax, others have rates over 10%.

Understanding your sales tax obligations is essential for staying compliant and avoiding penalties.

Sales tax obligations

If you're required to collect sales tax:

• Register — Get a sales tax permit from your state
• Collect — Add the correct rate to taxable sales
• Track — Keep records of tax collected
• File — Submit returns (monthly, quarterly, or annually)
• Remit — Pay the collected tax to the government

What's taxable?

Rules vary by state. Generally, physical products are taxable while many services are not—but there are many exceptions. Some states tax digital goods, some tax certain services. Check your state's specific rules or consult with an accountant to understand your obligations.