# United States: sales tax and states

> How a US business is set up — state at sign-up, state sales-tax rate, tax-exclusive pricing — and how to report the tax you collect.

Canonical: https://docs.getonebooks.com/tax/united-states/
Language: en
Documentation index: https://docs.getonebooks.com/llms.txt

Applies to businesses whose country is the **United States**.

## What is set up for you

- Currency **USD**, tax name **Sales Tax**, tax-exclusive pricing.
- The **state** you choose at sign-up sets the default sales-tax rate; you can add local rates under **Settings → Tax Settings**.

![The state picker on the sign-up form for a US business](https://docs.getonebooks.com/screenshots/en/tax-us-signup-state.webp)

![Company settings for a US business showing the state](https://docs.getonebooks.com/screenshots/en/tax-us-settings.webp)

## Daily work

- Tax is added on top of prices at the line's rate. Tax-exempt customers: use a **0%** rate on their lines.
- Purchases usually carry no reclaimable tax in the US; leave the purchase line tax at 0% unless you track use tax separately.

![A US invoice with sales tax added below the subtotal](https://docs.getonebooks.com/screenshots/en/tax-us-invoice.webp)

## Reporting

**Reports → Tax Report** totals the sales tax collected in the period for your state filing. See [Tax report and tax summary](https://docs.getonebooks.com/reports/tax-reports/).

## Related

  - [Tax settings](https://docs.getonebooks.com/tax/settings/)
  - [Choose your country](https://docs.getonebooks.com/getting-started/choose-country/)