Sales tax glossary
What is a district tax?
A district tax is a sales tax imposed by a special taxing district, such as a transit, stadium or public safety district, on top of state, county and city taxes. District boundaries often don't follow city limits or ZIP codes, which makes them easy to miss.
Example
Two addresses in the same city have different rates because only one sits inside a transportation district that adds its own tax.
Why it matters for sellers
District taxes are part of the combined rate you collect under destination sourcing. Because their boundaries don't match ZIP codes, rate lookups need the full street address to get them right.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
Free exposure assessment, no commitment.
See what sales tax is really costing you
30-minute walkthrough · No credit card required · See your own data live