- Definition
Tax revenue is the money the government collects from taxes, like income tax or sales tax, to pay for public services.
The money a city collects from property taxes and sales taxes all adds up to its total tax revenue for the year.
How to teach this in 30 seconds
Try this analogy: Tax revenue is like when everyone in the family chips in a little of their allowance to buy a new board game for everyone to share.
Ask your child: If our town collected tax money, what should it be spent on?
Common mix-up: Kids may think tax money just goes into a big government bank account. Tax revenue is the total amount collected specifically to pay for shared community services like roads, schools, and parks.
Examples
- The money a country collects from income tax is part of its national tax revenue.
- When you buy a toy and pay sales tax, that small amount becomes part of the government's tax revenue.
tax revenue is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
