Yes, sales tax and income tax are completely separate types of taxes with different purposes and recipients.

Sales tax is collected from your customers at the point of sale and must be remitted to state governments. You’re acting as a collection agent for the state – this money never belongs to you.

Income tax, on the other hand, is paid on your business profits to the federal government (IRS) and potentially to state governments as well. This is calculated based on your net earnings after expenses.

Both types of taxes must be filed and reported separately, and they’re calculated using entirely different methods. It’s critical not to confuse the two, as they serve distinct purposes in your tax obligations.