Sales Tax
TaxGlossary term
Definition
A consumption tax imposed by state and local governments on the sale of goods and some services. Rates vary widely by location and can range from 0% to over 10%. Five states have no sales tax at all.
Related terms
- SALT DeductionThe State and Local Tax deduction allows taxpayers to deduct state income, sales, and property taxes from their federal taxable income. Currently capped at $10,000 per year for individuals and married couples filing jointly.
- Property TaxAn annual tax levied by local governments on real estate based on the assessed value of the property. Rates vary by location and fund local services like schools, roads, and emergency services. Often paid through mortgage escrow accounts.
- Tax BracketThe range of income subject to a certain income tax rate in the progressive US tax system. Higher income levels are taxed at higher rates (marginal tax rates).
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