In addition to federal income tax, many people also pay

• A. State income tax
• B. Property tax
• C. Sales tax
• D. Social security tax

Answer: (A)

Taxes are collected by different levels of government, and income tax can be assessed by both the federal government and the state you live in. After you file your federal income tax, your state may also tax your earnings, using its own rates and rules. That makes state income tax another layer of tax on the same income, separate from the federal one, which is why this option fits best.

The other options describe taxes that aren’t additional income taxes: property tax is a levy on real estate, usually collected locally; sales tax is charged on goods and some services at the point of sale; Social Security tax is a payroll tax collected by the federal government for Social Security benefits. While they’re all taxes you might pay, they don’t fit the idea of an additional income tax paid to another level of government.