Sales tax glossary
What is local sales tax?
Local sales tax is sales tax imposed by a county, city or special district on top of the state rate. Most states with a sales tax allow local taxes, and there are thousands of local taxing jurisdictions nationwide. In a few states, home-rule cities administer their own sales taxes.
Example
A seller ships to a home-rule city that runs its own sales tax. The seller may need to register and file with the city in addition to the state.
Why it matters for sellers
Local taxes are the main reason rates vary from one address to the next. In home-rule states, local registration and filing add work beyond the state return.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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