Explain the difference between sales tax and income tax.

Question

Mathematics

Hayden Nash

25 July, 05:52

Explain the difference between sales tax and income tax.

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Baylee Friedman · Answer 1

Income tax is a separate issue from sales tax when you're running a small business. Income tax is the amount you pay on your total income from the business to the federal and state government. Sales tax is a percentage amount that your customers have to pay when they purchase certain items from your business.