Sales tax rates are also called percentage tax rates because they are imposed by the government on the selling prices of goods and services. These percentage taxes are considered as the least harmful and less noticeable compared to other types of taxes. They are charged every time you make a purchase or use a service. They are collected by the retailer, after which he will submit the revenue to the state. However, each state has a program which gives deductions or exemptions on some products and services. This information is provided by each state tax department which you can access on the internet. Furthermore, sales tax rates vary between states, counties, cities, and regions; thus, even if your cities are within the same state as your friend, you will pay different sales tax rates on similar items. For example in the State of Florida, if you live in Miami you get to pay a higher sales tax than your friend who lives in Palm Beach because your area charges 7%, while Palm Beach has 6.50% in sales tax.