A sales tax is an indirect tax.

Key Classification

Sales taxes are collected by sellers from consumers at the point of purchase but ultimately borne by the buyer, distinguishing them as indirect taxes rather than direct ones like income taxes.

Other Options

• Progressive tax : Applies higher rates to higher incomes; sales taxes do not follow this structure.

• Proportional tax : Charges the same rate regardless of income or purchase amount, though sales taxes share this flat-rate trait on transactions, their core classification differs.

• Direct tax : Paid directly by the taxpayer to the government without intermediaries.