Sales tax: Definition, how it works and how to calculate it
Sales tax is a type of consumption tax, meaning it taxes people for spending money. Here’s how to calculate it.
4 min read
Mar 19, 2025
Erin Gobler
Personal finance writer
Highlights
- Featured in publications such as Fox Business, Time and CNET
- Personal finance writer
- Previous experience includes public policy at the state government level
Experience
Erin Gobler is a personal finance expert and journalist who seeks to make the financial services industry more accessible by breaking down complicated financial topics in simple terms. Erin’s work appears in major financial publications, including Fox Business, Time and CNET.
Before becoming a financial writer, she worked in public policy at the state government level, helping to research, analyze, write and pass legislation in the state of Wisconsin.
Erin's latest articles
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Georgia State Income Tax Rates And Calculator
Here are the income tax rates, sales tax rates and more things you should know about taxes in Georgia in 2024 and 2025.
3 min read Mar 05, 2025 -
Why I love the Citi Premier Card
Citi Premier offers a high welcome bonus and attractive points redemptions for travelers.
4 min read Nov 22, 2023 -
Consumption tax: What it is and how it works
A consumption tax is one that applies to the sale or purchase of a good or service.
3 min read Nov 04, 2021 -
Excise tax: What it is and how it works
Excise taxes apply only to certain products and can be charged either as a percentage of a sale or on a per-unit basis.
3 min read Nov 03, 2021 -
What is the Internal Revenue Service (IRS) and what does it do?
The IRS is responsible for assessing and collecting tax revenue in the United States.
4 min read Oct 21, 2021