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What Are the Different Types of Taxes in the USA? Taxes are a necessary part of life in the United States. They help to fund the government and provide essential services, such as infrastructure, education, and healthcare. However, taxes can also be complex and confusing, especially for those who are not familiar with them. 2 Main Types of Taxes in the USA -Federal Taxes Income tax: Income tax is a tax on the income that you earn from your job, investments, and other sources. Income tax rates vary depending on your income level and filing status. Social Security tax: Social Security tax is a tax that is used to fund the Social Security and Medicare programs. Social Security tax is paid by both employees and employers. Medicare tax: Medicare tax is a tax that is used to fund the Medicare program. Medicare tax is paid by both employees and employers. Self-employment tax: Self-employment tax is a tax that is paid by self-employed individuals. Self-employment tax covers both Social Security and Medicare taxes. Excise taxes: Excise taxes are taxes on specific goods and services, such as alcohol, tobacco, and gasoline. State Taxes Income tax: Most states have an income tax. State income tax rates vary from state to state. Sales tax: Sales tax is a tax on the goods and services that you purchase. Sales tax rates vary from state to state. Property tax: Property tax is a tax on the property that you own, such as your home, car, and land. Property tax rates vary from state to state...