Tax

Tax is a mandatory financial charge or levy imposed by a government on individuals, businesses, or legal entities to fund public expenditures and services. It is a primary source of revenue for the state, used to finance infrastructure, healthcare, education, defense, and other essential services that benefit the general public.

Finance Tax

Finance tax generally refers to taxes applied to financial transactions, financial institutions, or financial income. This includes capital gains tax, dividend tax, and sometimes specific levies on banks or investment profits. It ensures that financial activities contribute fairly to government revenue.

FICA Tax

FICA stands for the Federal Insurance Contributions Act. FICA tax is a U.S. federal payroll tax that funds Social Security and Medicare programs. It is shared between the employer and the employee. As of 2025, the FICA tax rate is typically 7.65% for employees (6.2% for Social Security and 1.45% for Medicare).

OASDI Tax

OASDI stands for Old-Age, Survivors, and Disability Insurance, which is part of the Social Security program. The OASDI tax is the 6.2% portion of the FICA tax that funds retirement and disability benefits. It is withheld from an employee’s paycheck, with the employer matching the contribution.

Social Security Tax Limit 2025

In 2025, the Social Security wage base limit is $168,600. This means the 6.2% OASDI tax is only applied to the first $168,600 of an employee’s income. Any income earned beyond this limit is not subject to Social Security tax, although Medicare tax still applies without a cap.

Income Tax

Income tax is a tax on an individual’s or business’s earnings. It is typically progressive, meaning the rate increases as income rises. Individuals file annual tax returns to report their income and calculate how much tax is owed or refunded. Governments use this revenue to fund essential services and welfare programs.

Travel Tax

Travel tax refers to levies imposed on travelers, either by airlines or governments. These can include airport taxes, international departure fees, or tourism taxes. They are often used to support tourism infrastructure, national security, or environmental protection efforts.