3 Types of Taxes.There are various types of taxes that governments use to generate revenue to fund their programs and services.
Here are three common types of taxes:
- Income Tax: Income tax is a tax levied on the income earned by individuals and businesses. The tax rate is usually based on a person’s income level, with higher earners paying a higher percentage of their income in taxes.
- Sales Tax: Sales tax is a tax levied on the sale of goods and services. The tax rate is usually a percentage of the purchase price, and it is paid by the consumer at the time of purchase. Sales taxes can be levied by federal, state, or local governments.
- Property Tax: Property tax is a tax levied on real estate and other forms of property, such as cars and boats. The tax rate is usually based on the assessed value of the property, and it is paid by the property owner. Property taxes are typically levied by local governments to fund services like schools, roads, and public safety.
