What are the Types of Tax In the United States of America?

Whenever you are getting ready to pay the taxes, you may get curious. How many taxes are there actually someone had to pay. The things the tax depends upon someone income, types, and the place they are living. However these are not the only thing to determine to type of tax they need to pay. But here we wanted to cover the basics. You can use a Tax Calculator if you are finding it too much complicated, but knowing about them will always work to your advantage. 

 

Income Tax

 

So, this is the basic, which is known to everyone. Whatever you make by job or business comes under this tax. The federal government and the state levy this tax. To define how much a person needs to pay, there are brackets for different income brackets. Someone who is earning 90,000 USD may not pay the same tax as someone who is making 1 Million USD per year. To define how much you need to pay, there are tax brackets.  They range from 10 Percent to 39 Percent. 

 

 

Payroll Tax

 

This a tax mandatory by the federal government for people who have hired employees. They need to subtract the payroll tax from the paycheck to contribute to FICA. FICA is Federal Insurance Contribution Act. Now in this tax there are few things. There are three things in Fica. The first is Tax which is around 7.65%, then For social Security it is 6.2%, and for Medicare it is 1.45%. If someone is self-employed, then they need to pay about 15.3%. This is called Payroll tax.  

 

The Capital gains taxes 

 

Let's say you had an asset like a stock of a company or bond transaction. For any reason now, you have decided to sell them. So when you are selling them you will have to pay a tax on it as well. The fee is known as Capital Gain taxes. It ranges from 15 to 20 Percent. 

 

There are many more taxes, which we will explain in the future. But we wanted to tell you at least three of them. In any case, you should always look for a Tax Refund; after all it is hard-earned money. It would be best if you always looked for a way to save it. 

 

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