Okay, even if they vary from state to state and from county to county, why not just include it in a final price anyway?
In: Economics
Taxes are a line item that goes to the state it doesn’t go to the [retailers](https://sellics.com/blog-u-s-sales-tax-explained-for-both-u-s-and-non-u-s-sellers/).
>States use tax revenues pay for state budget items like schools, roads, and public safety. These items are governed at the individual state level and can vary widely between states. Because of this, sales tax rules, rates, and regulations are different in each state that collects sales tax.
A good example of this variance is with groceries—some U.S. states consider groceries to be subject to tax, while others consider groceries to be non-taxable
>When you file you’ll need to figure out how much sales tax you’ve collected from your customers in each individual state. Most states will also require you to break down your sales by local areas within each state and usually categorized into cities, counties, and other special taxing districts. This can be daunting, but sales tax automation technology can connect to your marketplaces and online shopping carts to simplify this process.
These are the basics of how sales tax works in the U.S. If you’d like to go on a deep dive in the topic, check out our Sales Tax 101 for Online Sellers guide.
Keeping them segrated allows the company to know how much money the states need to collect
Latest Answers