Dec '25 • General
L1.2 Types
Types of Taxes the IRS Collects
Here are the big ones:
Income Tax (Most important)
Paid by:
- Individuals
- Businesses
- Self-employed people
Based on taxable income, not total income.
- Payroll Taxes
- Split between:
- Employee
- Employer
Includes:
- Social Security
- Medicare
If you’re self-employed, you pay both sides (called self-employment tax).
- Corporate Tax
- Paid by companies (C-Corporations).
- Flat federal rate (currently 21%)
Capital Gains Tax
Tax on profit from selling:
- Shares
- Crypto
- Property
Rates depend on:
How long you held the asset
Your income level
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L1.2 Types
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