Most people are used to seeing sales tax on a receipt, but not every purchase includes it. When it doesn’t, you may still owe tax on that purchase through what’s called a use tax. This comes up most often with online shopping, out-of-state purchases and private sales. Understanding the difference between sales tax and use tax can help you avoid surprises when your state comes looking for what you owe.
A financial advisor or tax professional can review your purchases and filing history to make sure you are reporting use tax correctly and not overpaying or underpaying.
What Is Sales Tax?
Sales tax is a consumption tax that state and local…
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