What are the Different Types of Taxes

What are the Different Types of Taxes?

Below is a list of different types of taxes in the USA. There are many types of taxes in this country and even more types of taxes are proposed. Some types of taxes are federal taxes only while others are also state taxes and local taxes. Different types of taxes have different tax rates.

Property taxes

Property taxes are also called ad valorem taxes because they are based on value. There are two types of property taxes; property taxes imposed on realty and property taxes based on personalty or assets other than land or buildings.

  • Property Taxes on Realty

Property taxes on realty are used exclusively by states and local governments and political subdivisions such as cities, counties and school districts.

  • Property Taxes on Personalty

Personalty is all assets that are not realty.

Transaction taxes

Transaction taxes are imposed at the manufacturer’s, wholesaler’s or retailer’s level.

  • Federal Excise Taxes

Transactions which the federal excise taxes are imposed on include tobacco products, fuel and gasoline sales, air travel, manufacturers of trucks, trailers, tires, firearms, sporting equipment and coal and the gas guzzler tax on automobile, alcohol taxes, and other taxes such as wagering.

  • State and Local Excise Taxes

This is similar to the Federal excise taxes but levied at the state and local level.

  • General Sales Taxes

General sales taxes are similar to excise taxes but are levied on all transactions rather than particular transactions. A use tax is an ad Valorem tax, usually at the same rate as the sales tax on the use, consumption, or storage of tangible property.

Some states such as Alaska, Delaware, Montana, New Hampshire, and Oregon have neither sales tax nor use tax.

  • Severance Taxes

Severance taxes are imposed when the natural resources are extracted in a state.

Tax Questions is a resource and information website only. We do not offer individual advice. For specific tax questions and answers, you are advised to consult your tax attorney.