United States · Reviewed 2026-08-20
U.S. sales and use tax
The U.S. has no national VAT like the EU. Sales and use taxes are mainly state and local, with different bases, rates, and remote-seller rules.
Sales tax vs use tax
Sales tax is typically collected by the seller on taxable retail sales. Use tax can apply when you buy taxable goods without sales tax (for example from out-of-state sellers) and later use them in a taxing state. Consumers and businesses both appear in use-tax education, though compliance focus is often on businesses with nexus.
No single national rate
Each state designs its own taxable base - some tax food, digital goods, or services differently. Local add-ons can make the combined rate vary by city or county. Economic nexus rules after major court cases expanded when remote sellers must collect.
Link to investing
Buying listed shares is generally not a classic retail sales-tax event in the way buying goods is. Broker commissions and regulatory fees are different costs. Businesses that sell products still need sales-tax systems separate from capital-gains education.
Common mistakes
- Looking for a U.S. “VAT return” the way EU businesses file.
- Assuming online purchases are always tax-free because the seller is out of state.
Sources & further reading
VAT / sales / GST FAQ
Short answers for discovery.
What is u.s. sales and use tax?
The U.S. has no national VAT like the EU. Sales and use taxes are mainly state and local, with different bases, rates, and remote-seller rules.
What is a common mistake on United States u.s. sales and use tax?
Looking for a U.S. “VAT return” the way EU businesses file.
What is a common mistake on United States u.s. sales and use tax?
Assuming online purchases are always tax-free because the seller is out of state.
Investor tax guides
Featured explainers that pair with the United States desk and this topic - then open All guides for the full library.
- Tax Loss Harvesting Explained for Stock InvestorsTax loss harvesting means selling investments at a loss in a taxable account to offset capital gains (and sometimes a slice of ordinary income), then staying invested without triggering wash-sale or anti-avoidance rules. It helps most when you already have gains to offset - not as a reason to wreck a long-term plan.
- Capital Gains Tax on Stocks: Investor OverviewCapital gains tax (CGT) generally applies when you sell shares or ETFs for more than your cost basis. Rates, allowances, and holding-period rules vary by country - start here for the shared math, then open a StockWatch country CGT desk or country guide before you file.
- Crypto Tax Basics for InvestorsMost tax systems treat crypto like property for investors: selling, swapping, or spending can realize a gain or loss, and staking or airdrop rewards may look like income. Rules differ sharply by country - use this guide to frame the events, then open a capital-gains desk for your residency.
- Tax-Advantaged Accounts for Investors (IRA, 401k, ISA & More)Tax-advantaged accounts change when and how investment income is taxed: deferral inside pensions, tax-free growth in some wrappers, or employer plans with contribution limits. Names differ (401(k), IRA, ISA, TFSA, SIPP) - the design pattern is similar, and taxable brokerages still matter for overflow capital.
- Tax Loss Harvesting in the United StatesIn the U.S., tax loss harvesting usually means selling losers in a taxable account to offset capital gains - and sometimes up to $3,000 of ordinary income - while watching the wash-sale rule. This guide frames the pattern; confirm current IRS rules and your broker reports before filing.
- Capital Gains Tax on Stocks in the United StatesIn a U.S. taxable account, selling shares above your basis typically creates a capital gain taxed as short-term or long-term depending on holding period. Rates, netting, and forms change - use this as a map, then open the U.S. desk and IRS materials for the year you file.
- Wash-Sale Rule Explained for Stock InvestorsA wash sale generally means you sold at a loss and bought the same or a substantially identical security too close to that sale - so the loss may be disallowed or deferred. The textbook story is U.S.-centric; other markets use different rules. Use this guide before year-end harvesting.
- Roth vs Traditional IRA Basics for InvestorsTraditional IRA contributions may be deductible now with taxable withdrawals later; Roth contributions are after-tax with qualified withdrawals potentially tax-free. Eligibility, limits, and conversions are year-specific. Use this vocabulary guide, then the U.S. accounts desk.