With that in mind, below is a brief overview of the main types of taxes you should know to be an educated taxpayer. If, a week later, you take $100 from your remaining earnings to purchase a new smartwatch in a jurisdiction with a 5% sales tax, you’ll pay an additional $5 in taxes when you purchase that item.Īltogether, $105 of your initial $1,000 in income has been collected in taxes, just not at the same time.
One of the main differences among the tax types outlined below is the point of collection-in other words, when you pay the tax.įor example, if you earn $1,000 in a state with a flat income tax rate of 10%, $100 in income taxes should be withheld from your paycheck when you earn that income.
It’s important to remember that every dollar you pay in taxes starts as a dollar earned as income. Most taxes can be divided into three buckets: taxes on what you earn, taxes on what you buy, and taxes on what you own.
Learn about 12 specific taxes, four within each main category- earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes and own: property taxes, tangible personal property taxes, estate and inheritance taxes, and wealth taxes.Discover the three basic tax types-taxes on what you earn, taxes on what you buy, and taxes on what you own.
0 kommentar(er)
