Regressive Tax

A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.

Related MoneyPedia terms

• Progressive TaxA tax system where the rate rises as income increases, so higher earners pay a larger share of each added dollar.
• Sales TaxA tax added to the price of goods and services at checkout, collected by the seller for the government.
• Payroll TaxTaxes taken out of wages to fund programs like Social Security and Medicare, paid by both worker and employer.
• Excise TaxA tax on specific goods like fuel, alcohol, or tobacco, often built into the price rather than added at checkout.
• Property TaxA tax local governments charge on the value of real estate you own, funding schools and community services.

More in Taxes

Plain-English education — not personalized legal, tax, or investment advice.