Definitions for "Premium taxes"
Taxes levied by states on premiums received by insurers. Premium taxes usually are assessed at rates approximating 2% to 3% of premiums.
State income taxes levied on an insurer's premium income.
Some states charge a tax on the contributions made to an annuity. The issuing company generally charges the annuity contract for any premium tax and other taxes based on premium it pays to the state.