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Calculate the right tax rate

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Tax rates and amounts are for reference only. Exact calculations may change based on other details of your transaction.

How is sales tax calculated?

Sales tax is calculated as a percentage of the total taxable purchase. It’s a one-time tax charged at the point of sale to the end customer. The money goes from the consumer, to the vendor, to the government, the end.

  • Sales tax by state

    In the US, sales tax rates are determined at the state and local levels. There is no overarching national sales tax in the US. In fact, some states don’t have sales tax at all, such as Alaska, Delaware, Montana, New Hampshire, and Oregon.

    If you’re selling remotely to other US states, you should check the economic nexus laws to see if you are liable for sales tax there.

  • Local taxes

    Local sales tax rates are determined by different jurisdictions, such as the city or county. Sometimes local jurisdictions will add a temporary sales tax to raise funds for a public project, such as transportation or a cultural building.

    Though local rates are generally quite low compared to state-level tax, they’re just as important to stay aware of!

Note: At BetFiery we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or accountant.

Frequently Asked Questions

Businesses should collect sales tax only if they have nexus in a state. Sales tax nexus could be:

  • A physical presence (office, employee, storage or warehouse, inventory) in that state.
  • Marketing or sales affiliates that refer customers to your business.
  • Web cookies or click-through ads used on in-state websites.
  • A large volume or number of sales to in-state customers, a.k.a. economic nexus. (See next question!)

Each state has its own rules about nexus and when you’re liable for sales tax, so it’s important to check with local policies. Once you have a nexus, you should register for sales tax there and start collecting it on sales to customers within that state.

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