Direct tax
A direct tax is a tax paid directly to the government by a person or organization. A direct tax may not be passed on to another person or entity but must be paid by the entity responsible for the tax. A direct tax is different from an indirect tax, which is paid by someone other than the person or entity who would normally be responsible for it. For example, a tax owed on a piece of property is a direct tax. A tax on the sale of that property would be considered an indirect tax.