Taxes

What are Taxes? A tax is money paid to the government. The government uses this money to pay for highways, bridges, schools, libraries, parks, government salaries, the military and more. All adults are required to pay taxes. Some effects of not paying your taxes include eviction, property being taken away, and or jail time.

Sales Tax Paid on retail goods and services whenever the item is bought Changes by state (8% in TX) Based on the amount of money an item costs Practice Problem: Derek spends $58 on groceries at the grocery store. His total is $62.64. How much does he pay in sales tax?

Property Tax Paid on property owned (house, boat, car, land) Usually paid yearly Based on the value of the property owned and the area the property is owned in Practice Problem: Jose buys a new house. He pays $2,581 each year in taxes. In 2016, his property tax increases to $3,764 per year. By how much did his property tax increase?

Payroll Tax Money taken out of your paycheck Based on how much you earn and the taxes that your job decides to take out Practice Problem: Ashley earns $5,699 monthly. She gets $1,709.70 taken out for her payroll tax. How much is her net income?

Income Tax Paid or received once a year (due by April 15th) Based on your income, your number of dependents, student loans, and much more Practice Problem: Megan makes $46,000 a year. She owes 10% in income tax. How much money does she owe?