Types Of Income Tax

1. Personal Income Tax: This is the tax levied on the income earned by individuals, including wages, salaries, bonuses, rental income, interest income, and dividends.

2. Corporate Income Tax: Corporate or business profits are subject to taxation, typically calculated as a percentage of taxable income after deducting business expenses.

3. Capital Gains Tax: 

This tax is applied to the profit earned from the sale of assets such as stocks, bonds, real estate, or valuable items like art or collectibles. 

The rate may vary depending on the asset's holding period and the taxpayer's income level.

4. Dividend Tax: 

Dividend tax is imposed on the income received by individuals from dividends paid by corporations. 

The tax rate may vary depending on factors such as the type of dividend (qualified or non-qualified) and the individual's tax bracket.

5. Interest Income Tax: Interest income tax is levied on the interest earned from savings accounts, certificates of deposit (CDs), bonds, loans, or other interest-bearing investments.

6. Inheritance Tax and Estate Tax: 

These taxes are imposed on the transfer of assets or property from a deceased person to their heirs or beneficiaries. 

Inheritance tax is typically imposed on the recipient, while estate tax is levied on the estate of the deceased.

7. Payroll Taxes: 

These taxes are withheld from employees' wages by employers and are used to fund social insurance programs such as Social Security and Medicare. 

Employers also contribute a matching amount for each employee.

8. Self-Employment Tax: 

Self-employment tax is imposed on individuals who work for themselves, including freelancers, independent contractors, and sole proprietors. 

It includes the employee and employer portions of Social Security and Medicare taxes.

9. Alternative Minimum Tax (AMT): AMT is a parallel tax system designed to ensure that high-income individuals, corporations, estates, and trusts pay a minimum amount of tax, regardless of deductions or credits.

10. Excise Taxes: 

These taxes are levied on specific goods or activities, such as gasoline, tobacco, alcohol, and luxury items. 

Excise taxes are often included in the price of the product and paid by the manufacturer or distributor.