Web Reference: Jul 10, 2023 · The main difference between the two is that sales tax is a tax on the sale of tangible personal property, while use tax is a tax on the use of that property within a state. Sales tax vs. use tax: Learn the key differences, when each applies, and how they impact businesses. Get clear examples with the Sales Tax Institute. Mar 13, 2026 · Most people are used to seeing sales tax on a receipt, but not every purchase includes it. When it doesn’t, you may still owe tax on that purchase through what’s called a use tax. This comes up most often with online shopping, out-of-state purchases and private sales.
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