Excise Tax

Not what you pay for admission to your local 24-hour gym.

Excise taxes represent indirect taxes paid on a specific good or service. Rather than a percentage tax (like an income or sales tax), they are flat taxes assessed based on the specific number of items or activities sold.

Often, retailers just roll up the cost of the tax into the price of the item. Cigarettes represent a common example, with a heavy tax bill included in the price of every pack (like a price tag of 5 bucks, but where 3 of those bucks are tax). Gasoline, which carries a per-gallon excise tax, also counts.