Individual Taxes

Individual taxes are taxes that are paid by individuals. These taxes can include income tax, payroll tax, capital gains tax, and self-employment tax. Income tax is a percentage of an individual's total income that is paid to the government. Payroll taxes are deducted from an employee's wages and paid to the government for Social Security and Medicare programs. Capital gains taxes are imposed on profits made from selling investments such as stocks or real estate. Self-employment tax is a combination of Social Security and Medicare taxes that must be paid by individuals who work for themselves.