What is considered a direct tax?

A direct tax is a type of tax that is imposed directly on an individual's or entity's income or wealth, and the burden of the tax cannot be shifted to another party. Examples of direct taxes include income tax, corporate tax, and property tax. These taxes are typically levied based on the taxpayer's ability to pay, reflecting their financial status. Unlike indirect taxes, which are included in the price of goods and services, direct taxes are paid directly to the government by the taxpayer.