What is Local Sales Tax?

Sellers can apply a Local Sales Tax for in-person sales invoice orders. Here's a quick explanation for how it works.

What is Local Sales Tax?

Local governments impose sales taxes on specific products and services sold within their jurisdiction. This tax is sometimes referred to as city or county sales tax.

If the sale is local or in-person (eg. at an art fair), local U.S. sales tax may apply and the rate depends on the city/state. The seller can include the percentage for their local city in the invoice order. This does not apply to online sales.

How is Local Sales Tax calculated into the Order Total? 

The seller can set the Local Sales Tax rate depending on their city/state. To calculate the Local Sales Tax rate, the seller can use online tax calculators such as TaxJar or Wise. The Local Sales Tax amount is calculated based on the order subtotal after discounts.