How are taxes classified?

Taxes are classified primarily into two categories: direct and indirect taxes. Direct taxes are levied directly on individuals or organizations, such as income tax and property tax, where the taxpayer bears the burden. Indirect taxes, such as sales tax and value-added tax (VAT), are collected by intermediaries from consumers and passed on to the government. Additionally, taxes can also be categorized as progressive, regressive, or proportional, based on how the tax rate changes with the taxpayer's income level.