If you live in California or New York, you'll sigh at this list of sales tax rates from other locations. However, don't be too envious. While it is certainly easier to own and run a business in other states, there isn't always the potential to make the type of profits you can in larger states.
Each state handles their taxes a little bit differently. Typically, each state charges a base rate and the applicable city who charges another rate on top of that. This can get expensive if the state or county has high taxes, on top of the high state taxes.
There are only certain types of restaurants that will be profitable in smaller states due to demographics and consumer demands. That being said, if you want to be a restauranteur, California and New York are very competitive. And something as simple as a sales tax can make or break the bank.
For new entrepreneurs, it can help to see restaurant sales tax rates from various states. This can help you decide where to open your restaurant business, and whether there are any budgetary constraints. Calculating sales taxes can be complex, and may require the help of
Pos Equipment or an accountant. This will minimize any potential errors and ensure compliance with state and federal laws. Still confused by the entire thing? Read ahead for sales tax examples for restaurants from four different states.