Research Areas
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.
Articles from the Tax Foundation
- Major Components of the State Business Tax Climate Index, FY 2012, January 25, 2012
- State Business Tax Climate Index-- Sales Tax Index, 2011-2012, January 25, 2012
- Tax Policy Podcast: Maine Rep. Seth Berry on Tax Zappers, January 12, 2012
- 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
- George Runner of the California Board of Equalization, September 29, 2011
- State and Local (Combined) General Sales Tax Rates as of July 1, 2011, September 22, 2011
- Ranking State and Local Sales Taxes, by Scott Drenkard, September 22, 2011
- Combined State & Local Sales Tax Rates (As of July 1, 2011), September 22, 2011
- 2011 Sales Tax Holidays & Price Caps, August 8, 2011
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Mark Robyn, Micah Cohen and Joseph Henchman, July 28, 2011
- Dirk Giseburt of Davis Wright Tremaine LLP, July 14, 2011
- California Becomes Seventh State to Adopt "Amazon" Tax on Out-of-State Online Sellers, by Joseph Henchman, July 1, 2011
- Fergus Hodgson of the Pelican Institute, June 17, 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
- Map: State Sales Tax Rates as of January 1st, 2011, June 2, 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
- State General Sales Tax Collections Per Capita, Fiscal Year 2009, February 25, 2011
- State and Local Excise and Selective Sales Tax Collections Per Capita, Fiscal Year 2008, February 25, 2011
- State and Local General Sales Tax Collections Per Capita, Fiscal Year 2008, February 25, 2011
- State and Local Cell Phone Tax Rates, as of July 1, 2010, February 24, 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
- Joseph Henchman of the Tax Foundation on 2010 State Tax Changes, January 27, 2011
- Prof. Christine Ries of the Georgia Council on Tax Reform and Fairness, January 19, 2011
- State Tax Changes During 2010, by Joseph Henchman, January 12, 2011
- New York Court Sends "Amazon Tax" Case Back for More Information , November 4, 2010
- New Online Calculator Helps Americans Evaluate Value Added Taxes, October 28, 2010
- Kail Padgitt of the Tax Foundation: Sales Taxes, Property Taxes & Tax Revenue Sources, September 15, 2010
- 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
- Mark Robyn of the Tax Foundation: Why Sales Tax Holidays Are Poor Tax Policy, August 4, 2010
- Geoffrey Lawrence of the Nevada Policy Research Institute: Tax Reform in the Silver State, July 28, 2010
- Sales Tax Holidays Distort Consumer, Business Decisions, Provide Little Relief to Taxpayers, July 27, 2010
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Joseph Henchman, Micah Cohen and Mark Robyn, July 26, 2010
- Dr. Randall Holcombe of the Mercatus Center: VAT Too Costly for U.S., July 14, 2010
- Paul Frankel of Morrison & Foerster: Retroactivity and Retained Refunds, July 7, 2010
- Dr. Joseph Haslag of the Show-Me Institute: Tax Reform in Missouri, May 5, 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
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2010, April 1, 2010
- State General Sales and Use Tax Rates , March 29, 2010
- State and Local General and Selective Sales Tax Collections Per Capita, Fiscal Year 2007 , March 29, 2010
- Testimony to the Maryland House Ways & Means Committee: Maryland's Tax Rates Dismiss Regional Tax Competition, by Rob Shrum, March 25, 2010
- How Does Your State Compare? Tax Foundation Releases 2010 Facts & Figures Handbook, March 25, 2010
- Tax Foundation Submits Written Testimony on Reducing Maryland Sales Tax, 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 Sales Tax Holiday, Film Tax Credit Plans Won't Deliver on Promises, February 17, 2010
- Florida’s Sales Tax Holiday and Film Tax Credit Proposals Will Not Deliver on Exaggerated Promises, by Mark Robyn, February 17, 2010
- Comments at the Tax Analysts Panel on State Taxes on Internet Sales, by Joseph Henchman, February 5, 2010
- Tax Foundation Submits Statement Supporting Business Tax Simplification, February 4, 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
- Study: Colorado Tax Proposals Push State Away from Proper Tax Base, February 1, 2010
- Second Thoughts About Oklahoma’s Second Amendment Tax Holiday Proposal, by Mark Robyn, January 6, 2010
- Bush Tax Cuts, AMT Lead Tax Foundation List of Decade's Top Tax Stories, December 31, 2009
- Top 10 Tax Stories of the Decade, by TF Staff, December 30, 2009
- Vermont Income Tax Proposals Would Enable Elimination of Sales Tax, by William Ahern, December 3, 2009
- Testimony to Vermont Blue Ribbon Tax Structure Commission: Options for Improving Vermont’s Tax Competitiveness, by William Ahern, November 17, 2009
- Jeff Reed of McDermott Will & Emery: Amazon Taxes in New York, November 11, 2009
- Map: Sales Tax Average Rates, October 19, 2009
- Tax Foundation Releases Updated Combined State and Local Sales Tax Rates, October 16, 2009
- Updated State and Local Option Sales Tax, by Kail Padgitt, October 16, 2009
- New Report Compares State and Local Government Tax Revenue Sources, October 9, 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
- Mark Robyn of the Tax Foundation: Sales Tax Holidays, August 26, 2009
- Sales Tax Holidays: Politically Expedient but Poor Tax Policy, by Joseph Henchman, Micah Cohen and Mark Robyn, August 26, 2009
- Second Amendment holiday misses target, by Micah Cohen, August 9, 2009
- Past Sotomayor Opinions Not Encouraging for Opponents of State Tax Overreaching, by Travis Greaves and Joseph Henchman, July 14, 2009
- States Begin New Fiscal Year Following Many Tax Changes, July 13, 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
- Topline Results for Tax Foundation's 2009 Survey of U.S. Attitudes on Taxes, Government Spending and Wealth Distribution, April 8, 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
- State General Sales Tax Collections Per Capita, Fiscal Year 2007* , February 5, 2009
- New York Governor David Paterson’s Tax and Fee Proposals a Mixed Bag, by Josh Barro, January 22, 2009
- Map: Combined State and Local Sales Tax Rates, 2008, November 30, 2008
- 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
- State and Local General Sales and Gross Receipts Tax Collections Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- Double Taxation of Hospital Services Pushes Patient Bills Up, by Joseph Henchman, July 1, 2008
- Arizona's Special Interest Laundry List, by Josh Barro and Joseph Henchman, June 24, 2008
- Testimony on H.R. 5267, the Business Activity Tax Simplification Act of 2008, by 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
- General Sales Tax Collections by State, Fiscal Year 2006, June 28, 2007
- William Fox on the Merits of State Sales Taxes and Local Property Taxes, April 5, 2007
- The Hidden Tax for Sm(all) Business in Governor Blagojevich's Gross Receipts Tax, by Chris Atkins, March 29, 2007
- Tax Holiday or Permanent Tax Relief?, by Jonathan Williams, February 2, 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
- John Mikesell on the Reemergence of Gross Receipts Taxes, January 16, 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
- Holiday Season"Tax Holidays" No Break for Taxpayers, by Jonathan Williams, November 22, 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 \'holiday\' more hoopla than helpful, by Jonathan Williams, August 23, 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
- Dates of Adoption of Major State Taxes, January 1, 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
- Links to Other Tax Policy Resources, December 31, 1969