What is sales tax?

[niyati]

I keep seeing sales tax added to my purchases, but I’m not clear on what it actually is or why it varies by state or city. Can someone explain what sales tax is?

 

[maria]

State and local governments levy sales taxes on the sale of goods and services. It is usually included to the total cost that the customer pays and computed as a percentage of the retail price.

 

[robertwilliam]

Sales Tax is a form of tax paid to a governing body for the sale of goods and services. Sales tax is an indirect tax and is generally charged at the point of buy or exchange of certain taxable goods, charged as a percentage of the value of the product.