Jun 16, 2025
4 Major Types of Taxes
There are four main types of taxes that individuals and businesses need to understand to avoid a potential tax problem. Income tax applies to earnings from work or business activities. Sales tax is added at checkout on most goods and services. Property tax is based on the value of owned real estate and supports local services. Payroll tax is deducted from wages to fund retirement and healthcare programs—mistakes in any of these areas can lead to serious tax problems.
