specific tax

A specific tax, also known as a per-unit tax, is a fixed amount of tax imposed on each unit of a good or service sold, regardless of its price or value. It is levied as a fixed sum on each article or item of property without regard to its value. Specific taxes are determined by the head or number, or by some standard of weight or measurement, and require no assessment other than a listing or classification of the subjects to be taxed. This type of tax contrasts with an ad valorem tax, which is based on the value or price of the good or service. 

[Last reviewed in June of 2024 by the Wex Definitions Team]

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