Financial Literacy Vocabulary

Front

What is Property Tax?

Back

A tax based on the value of real estate property, paid by property owners.

Front

What is Sales Tax?

Back

A tax added to the price of goods and services at the time of purchase.

Front

What is Income Tax?

Back

A tax imposed on individuals or entities based on their income or profits.

Front

What is Payroll Tax?

Back

A tax that employers withhold from employees' wages to fund social insurance programs like Social Security and Medicare.

Front

Why does Property Tax increase when a house's value increases?

Back

Because property tax is calculated based on the assessed value of the property.

Front

How is Sales Tax calculated?

Back

Sales tax is calculated as a percentage of the sale price of goods and services.

Front

What is the purpose of Income Tax?

Back

To fund government services and programs such as education, healthcare, and infrastructure.

Front

What does Payroll Tax fund?

Back

It funds social insurance programs like Social Security and Medicare.

Front

If a meal costs $8 and the total bill is $9.15, what is the Sales Tax?

Back

The Sales Tax is $1.15.

Front

What is the difference between Sales Tax and Income Tax?

Back

Sales tax is charged on purchases, while income tax is based on earnings.