How to Calculate How Much You'll Pay in Taxes

According to the old adage, there are only two certainties in life: death and taxes. While there is not much you can do about death, taxes can at least be calculated so you know how much you will have to pay. The big challenge is that there are so many different kinds of taxes that must be paid. States and local sales taxes, federal and state income taxes, excise taxes and Social Security taxes are all levies that are ultimately passed on to the consumer.

Property Taxes

Property taxes may be calculated by multiplying the assessed value of your home, less any exemption amounts allowed by the local property tax rate.

Sales Taxes

Sales taxes can be figured by multiplying the sales amount of non-exempt goods and services you are purchasing by the total sales tax rate, which may include local, county and state assessments.

Excise Taxes

Excise taxes are charged on a number of commodities, including liquor, cigarettes and gasoline. The tax is generally included in the total retail price the consumer is charged, and the only way to find out the rate on most of these items is to contact the state comptroller's office and request the information on the specific item.

Income Taxes

Although federal income tax rates are fairly straightforward, determining the amount of income that is subject to taxation can be extremely complicated, depending on your individual situation.

FICA Taxes

FICA and SECA taxes, or Social Security taxes, are fixed by law at a combined employee/employer contribution of 15.3 percent of income.

Resources

• Internal Revenue Service Website