Types of Taxes

5 types of taxes

Income Tax

Income tax are paid to the federal, state, and local government to use for the common good. A few examples of uses for the common good could be repairing roads and building new schools.

Payroll Tax

Payroll Taxes are mostly paid to the federal government. They are used for paying for Social Security and Medicare.

Property Tax

Property taxes are usually paid to the state's government for personal property, such as a home or a car. "Multiple jurisdictions may tax the same property"

Sales Tax

Sales taxes are taxes levied by the city or state's price of a retail item. It is collected by the retailer and is soon sent to the city or state's government.

Excise Tax

Excise tax is enforced by the federal or state government. Excise tax is usually for non-essential consumer goods like environmental taxes and communication taxes.