Page 17 - FP-Sample-Flipbook

Take Action! Sales Tax

„ When you buy a DVD for $12.99, the total cost is Simply Common Types of Taxes Financial
„ Income Tax - tax paid
not $12.99. A percentage of the sale is added on put, taxes Literacy
„ I can identify my deductions on a W-4 represent to the federal and
form to determine if I am paying the in the form of a tax. The tax rate varies from place sometimes state, and No. 5
right level of tax out of my check. to place, but it is not unusual to pay 5-10% in a required local governments based
sales tax. contribution
„ I will look at my expenses to see if I that we make to the government. Taxes on the amount you earn.
should itemize my deductions on my „ Each state sets its own sales tax rate. Some are important because they are used Automatically taken out of
tax return. items that might not be taxed are groceries, your paycheck and paid by
prescription drugs, non-prescription drugs, and to provide important services for our your employer.
clothing. In some states, prepared food in grocery community, state, and nation. Public „ Sales Tax - tax paid on
Other Taxes We Pay stores or restaurants may be charged more than education for our children, police and rate varies by state.LLC
goods you purchase. The
©2017 Learnovation®,
the normal tax rate. Some states have no sales tax fire services, mail service, our military,
„ Excise Tax – higher tax at all. roads and bridges, and many other
rates put on specific services we take for granted are paid „ Excise Tax - a higher tax
items. Tobacco products, alcohol, Exercise - Calculating Sales Tax through taxes. Government assistance put on specific items
For Evaluation Only
gasoline, hotels, and sometimes You want to buy a sweater for $32.50 and a programs, Social Security, and Medicare such as tobacco, alcohol,
restaurants have an excise tax. Excise pair of shoes for $25. You live in Illinois where are paid for by the income from taxes. gasoline, hotels, etc. Taxes
taxes are collected by the producer the tax rate is 6.25%. How much tax will you „ Property Tax - tax paid on
or retailer and are not paid directly pay and what is the total cost of the purchase? It’s important to understanding why you the value of real estate you
by the consumer, so they are usually _____________________ are taxed, what taxes are used for, and own.
included in the retail price of the You run to the grocery store to pick up a $10 how taxes can affect your earnings and
product. prescription, a $5 cough syrup, a $3 gallon of milk spending habits. „ Personal Property Tax - tax
paid on property such as
„ Property Tax - Rules vary by state, and a $1 loaf of bread. You live in Florida with a 6% vehicles and boats.
but many require you to pay tax on sales tax. Groceries and prescription drugs are not
the value of your property. If you have taxed but over- the-counter drugs are. How much does
a loan, this tax may be automatically your purchase cost? ______________________
included in your mortgage payment. Money Matters

8 30% of property tax is used to support schools
Disclaimer:
Learnovation, LLC’s mission is to empower people to 8 The more you earn, the higher the percentage of taxes you pay
®
©2017 Learnovation , LLC improve awareness of their own financial situation.
All Rights Reserved. This information is intended to serve as a general 8 Married individuals can pay less taxes than single people
www.learnovation.com guide of financial principles and strategies. It is not
intended to address individual financial issues, nor 8 Some states do not have an income tax, including Alaska, Florida, Nevada,
should it be taken as legal, financial, or other advice. South Dakota, Texas, Washington, and Wyoming.