December 17, 2014 Admin | December 17, 2014 When do you pay sales tax? How can you reduce this tax? Why should you care?
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You pay sales tax when you purchase something within a state. Some states have exceptions for what you pay sales taxes on and some states have no sales tax at all, such as Alaska. One way to reduce this tax is to love in a state that has lower or no sales tax. Some towns have there own sales tax so that is something to consider when you pick somewhere to live.
You pay sales tax when you make a general merchandise or service purchase in a state or city that has a sales tax law. You can reduce your sales take by making less purchases that have sale tax, fresh food and groceries dont have sales tax but fast food does, so eat less at restaurants. You can also buy stuff online from stores that do not operate in your state. You could also move to a state that does not have sales tax like Nevada. You should care because you do not want to pay any more taxes then you have to.
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You pay sales tax when you buy “stuff” in most places in America (there are a few states with no sales tax, but not many). Generally, the state has a set amount like 6% and then most mid to large cities tack on an extra 1% to 2% to that for themselves.
You can reduce this burden by buying less “stuff” and being more mindful of all of the taxes you actually pay in your life. Think carefully before spending, ultimately, this should help you pay less tax, which in turn will help you pay down debt, increase savings, and invest for your future. Onward!