Tax
Use tax
Use tax is a US state tax on goods purchased without sales tax and used within that state, typically applying to out-of-state or online purchases. Use tax rates generally match the state's sales tax rate and the obligation falls on the buyer rather than the seller.
In plain terms: The tax you owe on something you bought untaxed from out of state.
Why it matters
Mostly relevant to businesses buying equipment across state lines. States increasingly audit for it, and business returns often include a use tax line that founders leave blank without realising it is a declaration.
Read the full guideUS business taxes