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There is no special tax on money used to pay taxes. But all the regular taxes will be charged on the money used to pay taxes.

For example, let's say your weekly salary is $100.

You calculate your taxes on the full $100 and it comes out to be $25. So you send $25 to the government (or your employer takes it out of your pay and sends it for you) and you get to keep $75. So, yes, you did pay tax on that $25 that got sent to the government.

The federal government does allow some deductions for state and local taxes. You can deduct either state income tax payments or state sales tax payments (both not both) and you can deduct real estate tax payments. A very few states allow a deduction for federal income taxes.

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Q: Is money used to pay taxes taxed?
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