Top 10 Things to Know About Use Tax
- Use tax mirrors the sales tax you would have paid in your home state.
- It complements sales tax — not replaces it.
- Applies to out-of-state and online purchases.
- It is self-assessed and paid by the buyer.
- Rules vary by state.
- Applies when using, storing, or consuming an item in-state.
- State-specific tax rates apply.
- Applies to both business and personal purchases.
- Sales tax exemptions also apply to use tax.
- Penalties apply for non-payment.