What are the types of taxes?

There are many different ways in which taxes can be classified. Based on economic feature or event that is to be taxed, here are some of the most common taxes in different tax systems around the world:

  • Income Tax: a tax on the income. It is the main tax in Canada.
  • Consumption Tax: known as Sales Tax or Commodity Tax. A tax levied on the consumption or use of a good or service.
  • Property Tax: A tax on the ownership of assets or properties.
  • Transfer Tax: A tax on the transfer of property from one owner to another.
  • Value Added Tax:  A tax on the market value added to a good or service that has been created by the taxpayer’s stage of the production or distribution cycle.
  • Tariffs or Customs Duties: A tax imposed on the importation or exportation of certain goods or service.
  • Capital Tax: A tax on the invested capital of a corporation.
  • User Tax: A tax levied on the user of some facility such as an airport or road.
  • Head Tax: A tax on the very existence of some classified group of people.