What is US sales tax?

The US has no national sales tax. Instead, 45 states and Washington, DC charge a state sales tax, and many let counties, cities and special districts add their own. The rate a customer pays is the combined rate for the place of sale. Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, though Alaska allows local taxes.

A combined rate is built in layers: state, then county, then city, then any special district such as transit. Two shops a few blocks apart can charge different rates if they sit in different cities or districts. For in-store sales you charge the rate at your store's address. States also decide what is taxable: many exempt groceries or tax them at a reduced rate, and prepared food is usually taxed.

Nexus is the connection that obliges you to collect a state's tax. A physical store, warehouse or staff in a state creates nexus there. Since the 2018 Wayfair decision, states can also require out-of-state sellers to collect once their sales into the state pass an economic threshold, commonly $100,000 a year. For a business that only sells in its own store, nexus is simple: you collect in your own state.

In SeroPOS you add each part of the rate as a tax rate in the back office (Settings, then Tax Rates) and combine them in a tax group, so a receipt can show the state and local parts or one combined line. Set the group as the default tax so new products pick it up. Exempt items carry a 0% rate. The Tax Report shows output tax, input tax and the net for any date range.