The US Tax Overview
01.A Three-Tiered System
Taxes in the US are collected at three levels: Federal (national government), State (dependent on where you live), and Local (city or county). Because tax laws are decided by separate legislative bodies, your tax rate will vary depending on your income and your zip code.
02.Direct and Indirect Taxes
You will pay direct taxes on the money you earn (income tax) and the property you own (property tax). You will pay indirect taxes when you purchase items (sales tax) or buy specific goods like gasoline (excise tax).
03.The Filing Obligation
In the United States, filing a tax return every year is a legal requirement for almost all residents who earn income. Even if you don't owe taxes, filing is often necessary to claim government refunds and credits.