What are the different types of taxes?
There are many different types of taxes that we pay on a yearly basis. Although there are really only two big categories: personal and business, there are also federal/state income taxes, real estate taxes, property tax, sales tax, hotel tax, local tax, and sin tax. These are all of the taxes that we must pay every year.Some residents in certain states are exempt from various taxes stated above. For example, Florida has no state income tax, but their rates for other taxes are higher to level out the taxation field. The main taxes are income tax at the federal and state level, real estate tax, property, and sales tax. Those are generally the taxes that end up in a higher percentage of our overall taxes. Hotel tax, local tax, and sin tax are smaller taxes and rely mostly on our habits as consumers/customers.