What is sales tax?

Sales tax is a fee charged by government agencies for the sale of products and services. The fee is usually a percentage of the price of the product or service.

The buyer (your customer) pays the fee to the seller (you), who passes it on to the agencies by making tax payments.

The Sales Tax Center is where you keep track of the tax rates (percentages) for your business, the agencies you pay, how much you've collected, and the tax payments you've made.

You'll need to consult other sources to find answers to these questions:

• Do your products or services require sales tax in your state?
• What's your sales tax rate?
• What agencies do you need to pay your sales tax to?
• How often do you have to make sales tax payments?

Good sources to consult are:

• The government web site for your state. Often you'll find a section that contains detailed information about taxes in the state.
• Your accountant or a certified QuickBooks expert.
• Online apps and services that specialize in sales tax.

See also

How is sales tax calculated?