The Basics of Sales Tax in The United States

The federal government

State governments

Local governments (cities and counties)

Both federal and state governments

It is always included in the listed price.

It is calculated and added at the time of the transaction.

It is only applied to items purchased online.

It is only applied to services, not physical goods.

Yes

No

A federal law standardizing sales tax rates across states.

The minimum amount of sales tax a state can charge.

The threshold at which a company is required to collect sales tax in a particular state.

A type of sales tax exemption for small businesses.

To allow individual sellers to avoid collecting sales tax.

To require states to simplify their sales tax regulations.

To mandate that online platforms like Amazon collect and remit sales tax for third-party sellers.

To ensure customers pay sales tax directly to the state government.