Hidden Taxes


DEFINITION of 'Hidden Taxes'

Taxes that are indirectly assessed upon consumer goods without the consumer's knowledge. Hidden taxes are levied upon the goods at some point during the production process and therefore raise the cost of the goods sold. However, this tax is never revealed directly to the consumer, who simply pays a higher price for the good, not knowing that part of that price is due to this tax.

BREAKING DOWN 'Hidden Taxes'

Some ad valorem taxes are an example of a hidden tax, as are taxes that are imposed at the wholesale level. Most consumers are aware that there is a tax on retail goods (sales tax), but this is by no means the only tax levied on consumer goods. Hidden taxes are almost invariably passed on to the consumer.

  1. Taxes

    An involuntary fee levied on corporations or individuals that ...
  2. Sales Tax

    A consumption tax imposed by the government on the sale of goods ...
  3. Stealth Taxes

    A type of levy that governments use to increase their revenues ...
  4. Tax Rate

    The percentage at which an individual or corporation is taxed. ...
  5. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
  6. Value-Added Tax - VAT

    A type of consumption tax that is placed on a product whenever ...
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