What expense category are state taxes?

There is no definitive answer to this question as it depends on the business and the state in which it is located. However, some common expense categories for state taxes include:

  • Income taxes: This is the most common category for state taxes and includes taxes on personal and corporate income.
  • Sales taxes: This category includes taxes on the sale of goods and services.
  • Property taxes: This category includes taxes on real and personal property.
  • Excise taxes: This category includes taxes on specific products or activities, such as gasoline, alcohol, or cigarettes.
  • License taxes: This category includes taxes on businesses for the privilege of operating in a state.

The best way to determine which expense category is correct for your business is to speak with your accountant or financial advisor. They will be able to help you determine which taxes you are responsible for and how to properly categorize them.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below

Zero-touch expenses

Ramp saves you hours of work every month with a seamless expense automation process.
Explore demo