Premium Tax

What Does Premium Tax Mean?

A premium tax is a tax that insurer are required to pay on the premiums they receive from their policyholders. The tax rate varies by state, so the amount insurer must pay for premium taxes can differ significantly across regions.

Insuranceopedia Explains Premium Tax

Premium taxes are just one of many government regulations that insurance companies must comply with. Understanding the amount they will need to pay in premium taxes is a crucial part of their financial planning.