Consumption/VAT/Sales Tax in the United States
- Nature of the Tax
- Sales Tax is levied by individual States at various rates. For more specific information at local level, consult the United States Taxation Site and the FTA website.
- Standard Rate
- Varies by State and city (around 5% and 6%).
- Reduced Tax Rate
- Varies by State and city. Click here for more information.
- Exclusion From Taxation
- - Food for human consumption (groceries) are generally exempt from tax unless sold in a heated condition (except hot bakery items or hot beverages)
- Prescription drugs and certain medical supplies
- Energy utilities
- Certain alternative energy devices and supplies
- Method of Calculation, Declaration and Settlement
- For information on the sales tax calculation you can access the dedicated official government website.
- Other Consumption Taxes
- Other consumption taxes are levied at the local level. Click here for more information about other consumption taxes by states.
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