A sales tax is a tax that is imposed by a government on purchases from retailers within its jurisdiction. The purpose of the tax is to generate revenues for the government and to protect consumers, as it keeps prices from being inflated by sellers who already have higher costs from other taxes.
In some countries, such as Canada, Mexico, and the United States, the sale of goods including food and clothing items is exempt from sales taxes.
In states that have a sales tax, it is charged on goods and services purchased from stores. Sales tax rates vary from state to state and the taxes collected are used for various purposes. In many cities, sales tax can be added onto a purchase by a store or retail chain through a process called "taxation at the point of sale".