what is direct tax

A direct tax is a tax that an individual or organization pays directly to the government entity that imposed it. Examples of direct taxes include income tax, property tax, and taxes on assets. Direct taxes cannot be shifted to another party and remain the responsibility of the taxpayer to pay. Direct taxes are the opposite of indirect taxes, which are levied on one entity but paid by another. Direct taxes promote equality among taxpayers as they are based on the ability of a person to pay.