Business taxes are fees that businesses must pay to the government or other regulatory bodies. These taxes cover a wide range of activities and services, including income taxes, property taxes, payroll taxes, and excise taxes. Knowing which categories these taxes fall under is essential for any business owner or accountant. Tax expenses can be divided into five main categories: income tax, corporate tax, sales tax, payroll tax, and excise tax. Income tax is the money paid on business profits; corporate tax applies to companies doing business in multiple states; sales tax is collected from customers at the point of sale; payroll tax is money collected from employees as part of their wages; and excise tax is imposed on certain goods and services. Knowing how to categorize business taxes will help ensure that your business stays compliant with the law.