Capitation tax

Capitation tax is a fixed amount of money that individuals are required to pay periodically, regardless of their income or use of services. It is a form of taxation where each person, or "capitated" individual, pays the same fee, often used in specific contexts like healthcare or municipal funding. The idea is to generate revenue from the population in a straightforward way, ensuring all contributors pay a predetermined amount. This type of tax simplifies collection but may be viewed as less equitable, as it doesn’t adjust for ability to pay or consumption levels.