The 10,000 Jurisdiction Problem
The United States does not have a national sales tax. Instead, sales taxes are governed at the state and local levels. Forty-five states plus the District of Columbia levy state-level sales taxes. Local governments — counties, cities, and special districts — can levy their own additional sales taxes, resulting in over 10,000 unique tax jurisdictions across the country. This fragmentation makes accurate rate lookup essential for any business charging sales tax.
