Sales Tax in the United States

Any retailer that sells products in the United States is required to collect sales tax. Cartpanda, as the platform responsible for processing the sale, takes care of this process for you.

How Sales Tax Collection Works

• Cartpanda, as your sales platform, is responsible for collecting sales tax at the point of purchase and remitting it to the appropriate state or local government.
• The tax rate may vary significantly between states, and even between cities or counties within the same state.
• The tax rate may also vary depending on the type of product, such as a nutraceutical product or a digital product.

What Is Sales Tax and Why It Exists

Sales tax collection in the United States is necessary to fund essential public services and maintain local, state, and federal infrastructure. Below are some of the main reasons:

1. Revenue for Local and State Governments

In the United States, sales tax is one of the main sources of revenue for state and local governments. This revenue is used to fund:

• Schools
• Roads and infrastructure
• Hospitals
• Public safety services (police and fire departments)
• Other public services

2. Absence of a Federal Sales Tax

Unlike many countries that have a federal Value Added Tax (VAT), the United States does not have a federal sales tax.

Because of this, states are responsible for collecting taxes to meet their fiscal needs.

3. State Autonomy

Each state has the authority to establish and charge its own sales tax, reflecting the federal structure of the country.

This means that each state can decide:

• Its own tax rate
• Which goods or services are taxable

4. Fiscal Equity

Sales tax ensures that all consumers contribute a portion of their purchases to public services, regardless of their income.

This is particularly relevant because sales tax is a consumption-based tax.

5. Promotion of Local Competitiveness

Some states rely heavily on sales tax to maintain their fiscal competitiveness.

For example, states that do not charge personal income tax (such as Texas and Florida) depend more heavily on sales tax revenue to fund public services.

Updated on: 03/10/2026