There's been a lot in the news recently about the US and the debt ceiling, tax rises etc... but something I've not understood is how the tax system works over there? How much does the average person get taxed? In the UK, every household has to pay "council tax", which I'd guess is just over £1000 for most houses. There's then employment taxes which are in bands (10%, 20%, 40% and 50%) plus national insurance, so a salary of £30,000 would end up getting about £23,000 after tax. Then, we've got VAT on the sales of most items, which is 20%. There are lots of other types of tax (like capital gains, inheritance, etc...) - but these are the main ones. Is it a similar setup in the US? When I've been there, the sales tax seems to vary depending on what I buy and which state - so I've never understood that. It also seems to be added on to the price of something on top of the price shown? In the UK, the price you see is the price inc VAT in nearly all cases. Am I right in thinking that there's a property tax too?