Insurance Premium Tax

Insurance Premium Tax (IPT) is a tax levied on insurance premiums paid by consumers for various insurance policies, such as home, car, and health insurance. When you purchase an insurance policy, the provider adds this tax to the premium cost, which is then collected by the insurer and paid to the government. The rate of IPT can vary depending on the type of insurance, and it helps fund public services and regulatory activities. Essentially, it’s a cost that policyholders bear as part of their insurance payments.