e-commerce sales tax

E-commerce sales tax is a tax imposed by state and local governments on online transactions. When you purchase goods online, the seller may be required to collect and remit sales tax based on the buyer's location. This ensures that online sales are taxed similarly to in-store purchases, helping fund public services. The tax rate and rules vary depending on the state or locality, and some regions now require online sellers to have a physical presence or meet sales thresholds before collecting tax. As a buyer, you'll usually see the sales tax added at checkout if applicable.