Sales Tax

A tax charged by the government to raise money so it can provide public services.

It is based on a certain percent of the price.

Example: Your State charges 8% sales tax.
You want to buy a t-shirt advertised for $20
Sales Tax is $20 × 8% = $1.60
So you have to pay a total of $20 + $1.60 = $21.60

In some countries the tax is already included in the price, so the t-shirt will be advertised as costing $21.60

The seller collects the tax on behalf of the government (they don't get to keep it!)