Sales tax is a percentage added to the price of goods and services at the point of sale. Unlike income tax, which is based on what you earn, sales tax is based on what you spend. The rate and rules vary significantly by state and sometimes by county or city—some states have no sales tax at all, while others combine state and local rates that can exceed 10 percent. Understanding how sales tax works helps you see the real cost of purchases and recognize why the same item costs different amounts in different places.

These articles explain which purchases are taxed and which are exempt, how sales tax differs from other taxes you pay, and why certain categories like groceries or clothing may be treated differently depending on where you live. You'll also learn how sales tax affects your budget and how it connects to other tax concepts like use tax, which applies to items bought out of state.