+ Intro to Taxes

+ Federal Income Tax Primary source of income for the federal government This is known as a progressive tax Progressive tax: system where the tax rate increases as your income increases

+ Federal Income Tax What is our money spent on?

+ Payroll Tax Include Social Security (FICA) tax and Medicare tax Social Security tax rate: 6.2% Medicare tax rate: 1.45% These are known as a flat tax Flat tax: system where the same tax rate applies to every taxpayer regardless of income FICA: Federal Insurance Contributions Act

+ Sales Tax One of the primary sources of income for state governments Collected at Point of Sale (not withheld from paychecks) Which 5 states have no sales tax? Alaska Montana New Hampshire Delaware Oregon What do we pay in Virginia? General VA Sales: 4.3% Local Sales: 1% Total: 5.3%

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+ State Income Tax One of the primary sources of income for state governments Can you guess which seven states do not have an income tax? Alaska Florida Nevada South Dakota Texas Washington Wyoming So would you pay less living in these states?

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+ Property Tax Primary source of income for local governments Taxable personal property: motor vehicles, boats, boat trailers, mobile homes, aircraft, campers, utility trailers Can you guess which county has the lowest and highest property taxes? Lowest property tax: Tangipahoa Parish, Louisiana (0.13%) Highest property tax: Monroe County, New York (2.89%)

+ Property taxes cont. WHAT WE PAY: Albemarle County Personal Property Taxes 2014 Assessed value : The dollar value placed on real estate or personal property to determine property taxes