I Can Understand Types of Taxes

By Josue Salazar

Payroll Tax

A tax on earned income that supports the Social Security and Medicare programs (also known as FICA). Individuals who earn income pay this type of tax.


Income Tax

A type of tax on earned and unearned income. Taxes for the money earned from your job and taxes for the money earned from sources other than employment.


Property Tax

A tax on property such as land, buildings (including homes), and motor vehicles. Percentage of property value.


Sales Tax

Tax on purchased goods and services. A percentage added to the original price of an item.


Excise Tax

Taxes collected from the seller or retailer and as such often remain hidden in the price of a produce and service.