Use tax
Updated
Definition
A complement to sales tax: when a buyer purchases taxable goods without paying sales tax (e.g., from an out-of-state seller without nexus), the buyer owes use tax to their state. Use tax rates match sales tax rates.
Related terms
- Sales tax nexus— The legal connection between a seller and a US state that obligates the seller to register…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.