The Five Tax Types

by Martin Meggett

Income Tax

Income taxes are taken from your income like the name says. These taxes are given to the local, state, and federal governments to pay for the common good.

Payroll Tax

Payroll taxes are also taken out of your income but are given to the federal government. It is used to go towards your social security and medicare.

Property Tax

Property taxes are given to the state government for property that you own.

Sales Tax

Sales tax is given to retailers who give it to the city or state government. It is added to the retail price of an item.

Excise Tax

Excise tax is collected by the state or federal government. It is used for non-essential goods like fuel taxes, environmental taxes, and communication taxes.