Different Types of Taxes Individuals Have to Pay

Paying Taxes in UtahPersonal income tax is one of the most known taxes, but there are many others that you have to pay. In any given financial year, there are different types of tax that you aren’t exempt from paying. Many people do not love paying taxes, but it is for their own benefit. Below is a list of the different taxes you have to pay:

Personal Income Tax

This is the percentage of tax you pay on the income you receive in a year. This is dependent on the gross income you receive, so those receiving higher gross income pay may have to pay more tax. You have to fill in a form every year to pay these taxes. You can ease the personal tax burden by making the most of the following tax credits: saver’s credit, child tax credit, and education credit. Tannerco.com says that hiring licensed accountants in Utah or anywhere in the U.S. can help you with this if you’re still confused.

Property Taxes

This tax is a computation on the value of your property. The tax collected is used to go to local projects and other related concerns, such as road maintenance and sewage treatment. The percentage paid differs from one state to the other, so make sure you know how much you have to pay.

Consumption Taxes

This is a tax that is pinned to the selling price of an item. For each item you buy, a percentage of the selling price is given to the government as tax. The more you buy, the more consumption tax you have to pay. There are some products that are exempted from tax, however, such as groceries and medications. The rate of tax is usually set by state governments. Tax on items is usually collected by the retailer who passes it on to the government.

It is wise to pay your taxes to avoid penalties, such as jail time. In the end, you will be the one benefiting from the taxes by enjoying better services.