Publications
Sales & Use Taxes
Sales taxes are a form of excise levied when a good or services is sold to its final consumer. Sales taxes are levied at both the state and local level, and commonly exempt food, utilities and other necessities from taxation. Since state sales taxes only apply to purchases within a state's borders, they are typically accompanied by a use tax that applies to the use, storage, or other consumption within the state of goods or services purchased out of state.
Additional questions about sales and use taxes? Contact us at (202) 464-6200.
Publications from The Tax Foundation
- States Vary Widely in Number of Taxpayers Deducting State or Local Sales Taxes, by Nick Kasprak, January 11, 2012
- Assessing Federal Action on State Efforts to Collect Sales and Use Taxes on Internet Commerce (Testimony Before the U.S. House of Representatives), by Joseph Henchman, November 30, 2011
- Overreaching on Obesity: Governments Consider New Taxes on Soda and Candy, by Scott Drenkard, October 31, 2011
- Ranking State and Local Sales Taxes, by Scott Drenkard, September 22, 2011
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Mark Robyn, Micah Cohen and Joseph Henchman, July 28, 2011
- California Becomes Seventh State to Adopt "Amazon" Tax on Out-of-State Online Sellers, by Joseph Henchman, July 1, 2011
- Ending the Nexus Guessing Game for Taxpayers: Lamtec Corp. v. Washington Department of Revenue, by Joseph Henchman, Dirk Gisebert and Laura Lieberman, June 16, 2011
- Louisiana Considers Adopting "Amazon" Tax on Out-of-State Online Sellers, by Joseph Henchman, May 26, 2011
- The Role of Congress in State Tax Legislation: Ensuring that State Taxation Does Not Do Harm to the National Economy (Testimony Before the U.S. House Committee on the Judiciary, Subcommittee on Courts, Commercial, and Administrative Law), by Joseph Henchman, May 25, 2011
- Prepared Statement of Joseph Henchman: Hearing on the Business Activity Tax Simplification Act of 2011, by Joseph Henchman, April 13, 2011
- Rising Gasoline Prices Benefit a Few States, by Alex Wood-Doughty, Sarah Hyon and Kail Padgitt, March 22, 2011
- Connecticut Governor Malloy Proposes Multifaceted Tax Plan, by Kailee Tkacz and Mark Robyn, March 14, 2011
- Ranking State and Local Sales Taxes, by Kail Padgitt, February 3, 2011
- Recent State Tax Reforms in the United States and Opportunities for California at a Time of Fiscal Challenge (Testimony before California's Select Committee on Recovery, Reform, and Realignment), by Joseph Henchman, February 2, 2011
- State Tax Changes During 2010, by Joseph Henchman, January 12, 2011
- Supreme Court Considers Whether Sales Tax Exemptions Can Be Discriminatory Taxes, by Joseph Henchman, September 13, 2010
- Where Do State and Local Governments Get Their Tax Revenue?, by Kail Padgitt and Ryan Forster, August 27, 2010
- A Review of 2010’s Changes In State Tax Policy, by Joseph Henchman and Xander Stephenson, August 23, 2010
- State and Local-Option General Sales Tax Rates, by Kail Padgitt, August 19, 2010
- Major Metropolitan Area Sales Tax Rates , by Lawrence Summers, August 19, 2010
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Joseph Henchman, Micah Cohen and Mark Robyn, July 26, 2010
- Testimony of Joseph Henchman Before the U.S. House Committee on the Judiciary, Subcommittee on Commercial and Administrative Law--Hearing on the Impact of Congressional Legislation on State and Local Government Revenues, by Joseph Henchman, April 15, 2010
- Testimony to the Maryland House Ways & Means Committee: Maryland's Tax Rates Dismiss Regional Tax Competition, by Rob Shrum, March 25, 2010
- Testimony to the Maryland Senate Budget & Taxation Committee on SB 824 - "Amazon Tax" Laws Signal Business Unfriendliness and Will Worsen Short-Term Budget Problems, by Joseph Henchman, March 17, 2010
- Illinois Should Respond to Recession by Broadening Tax Bases and Spending Frugally, Not by Raising the Personal Income Tax Rate, by Justin Higginbottom, March 11, 2010
- "Amazon Tax" Laws Signal Business Unfriendliness And Will Worsen Short-Term Budget Problems, by Joseph Henchman, March 8, 2010
- Pennsylvania Governor Proposes Spending Boost, Broader Sales Tax, Heavier Business Taxes, by Joseph Henchman, February 25, 2010
- Georgia Should Respond to Recession with Tax Reform, Not Tax Gimmicks, by Justin Higginbottom, February 19, 2010
- Florida’s Sales Tax Holiday and Film Tax Credit Proposals Will Not Deliver on Exaggerated Promises, by Mark Robyn, February 17, 2010
- Cities Pursue Discriminatory Taxation of Online Travel Services, by Joseph Henchman, February 3, 2010
- Handful of Proposals Would Push Colorado Away From the Proper Tax Base, by Mark Robyn, February 1, 2010
- Second Thoughts About Oklahoma’s Second Amendment Tax Holiday Proposal, by Mark Robyn, January 6, 2010
- Testimony to Vermont Blue Ribbon Tax Structure Commission: Options for Improving Vermont’s Tax Competitiveness, by William Ahern, November 17, 2009
- Updated State and Local Option Sales Tax, by Kail Padgitt, October 16, 2009
- Where Do State and Local Governments Get Their Tax Revenue?, by Gerald Prante, October 9, 2009
- "Amazon Tax" Unconstitutional and Unwise, by Joseph Henchman and Justin Burrows, September 15, 2009
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Joseph Henchman, Micah Cohen and Mark Robyn, August 26, 2009
- Past Sotomayor Opinions Not Encouraging for Opponents of State Tax Overreaching, by Travis Greaves and Joseph Henchman, July 14, 2009
- Some States Respond to Budget Shortfalls with Tax Increases, by Mark Robyn and Kail Padgitt, July 13, 2009
- The Pine Tree State Chops Down Income Tax: Maine Enacts Major Tax Reform, by Kail Padgitt, June 23, 2009
- A Golden Opportunity: California’s Budget Crisis Offers a Chance to Fix a Broken Tax System, by Joseph Henchman, May 18, 2009
- Testimony before Maryland Legislature on the Streamlined Sales Tax Project, by Joseph Henchman, February 18, 2009
- State Budget Shortfalls Present a Tax Reform Opportunity, by Joseph Henchman, February 11, 2009
- New York Governor David Paterson’s Tax and Fee Proposals a Mixed Bag, by Josh Barro, January 22, 2009
- NYC May See Higher Income, Sales and Property Taxes, by Josh Barro, November 12, 2008
- The Right Prescription for Mississippi, by Joseph Henchman, August 19, 2008
- Testimony on H.R. 5267, the Business Activity Tax Simplification Act of 2008, by Joseph Henchman, June 24, 2008
- Arizona's Special Interest Laundry List, by Josh Barro and Joseph Henchman, June 24, 2008
- States Should Avoid Sales Taxes on Nonprofit Hospital Purchases, by Joseph Henchman, April 11, 2008
- Maryland Flouts Regional Tax Competition with Historic Tax Hike, by William Ahern, April 9, 2008
- Paying at the Pump: Gasoline Taxes in America, by Jonathan Williams, October 16, 2007
- Santa Fe Should Not Fatten Budget with Soda Taxes, by Gerald Prante, August 23, 2007
- The Hidden Tax for Sm(all) Business in Governor Blagojevich's Gross Receipts Tax, by Chris Atkins, March 29, 2007
- Gross Receipts Taxes in State Government Finances: A Review of Their History and Performance, by John L. Mikesell, January 31, 2007
- Tax Reform in Michigan: Replacing the Single Business Tax, by Chris Atkins and Jonathan Williams, January 24, 2007
- What West Virginia Needs to Do in Order to Compete in the 21st Century, by Curtis S. Dubay, December 11, 2006
- Tax Pyramiding: The Economic Consequences of Gross Receipts Taxes, by Andrew Chamberlain and Patrick Fleenor, December 4, 2006
- Establishing Physical Presence: Borders Online Case Reveals Court Disharmony in Applying Physical Presence Rules to State Sales Taxes, by Chris Atkins, September 26, 2006
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Johanna Mausolf, Curtis S. Dubay and Jonathan Williams, August 3, 2006
- Temporary Gasoline Tax Holidays: Relief for Motorists or Poor Tax Policy?, by Andrew Chamberlain and Jonathan Williams, July 10, 2006
- Michigan "Index Analysis": Elimination of Michigan SBT, by Chris Atkins and Curtis S. Dubay, May 23, 2005
- How Excise Tax Differentials Affect the Cross-Border Sales of Beer in the United States, by Patrick Fleenor, May 1, 1999
- Analysis and Summary of the National Retail Sales Tax Act of 1996, by Arthur P. Hall, Ph.D., March 1, 1996
- Business Tax Burdens—II, January 24, 1986
- VAT After All?, August 5, 1985
- State and Local Sales Taxes, by TF Staff, August 1, 1970
- Current Problems and Issues in State Taxation of interstate Commerce, January 30, 1966
- Federal Non-Income Taxes: An Examination of Selected Revenue Sources, by TF Staff, April 1, 1965
- Retail Sales and Individual Income Taxes in State Tax Structures, by TF Staff, January 1, 1962
- Federal Excise Taxes, by TF Staff, June 1, 1956
- Project Note No. 28 Major State Taxes 1939 and 1950, December 31, 1951