Sales tax is a type of consumption tax that is usually applied to the sale of goods and services. The rate of sales tax varies by state and is calculated based on the final sale price.
For instance, if the final price of an item is $100 and the sales tax rate is 10%, the sales tax would amount to $10 (which is $100 x 10%). Consequently, the total price, includig tax, would be $110 (which is $100 + $10).
Next, let’s understand when sales tax gets triggered in the United States.