What "sales tax" means in finance

Sales tax is a tax imposed by the government on the sale of goods and services. It is usually calculated as a percentage of the total cost of the item being sold, and is collected by the seller at the point of sale. The tax revenue is then typically used to fund government programs and services. Sales tax rates can vary depending on the location and type of item being sold, and may be levied by the state, local, or federal government.