[Glossary](https://pecuvo.eu/en/glossary/) · Income and taxes # Local taxes and fees **In short:** Local taxes and fees are payments to your municipality — on property, vehicles, waste collection, gifts and inheritance — that fund local services; their amounts are often set by the local council. **Simply put:** National law sets the frame, and each municipality may set the exact amount, so it differs between towns. A tax goes into the municipality's general budget; a fee pays for a specific service. Put the deadlines in your calendar. **Example:** A family with a flat and a car plans three payments to the municipality in its yearly budget: property tax, vehicle tax and the waste fee. **General rule:** Local taxes are national or local matters in every country; the EU does not set them. > **Example: Bulgaria** — under the Local Taxes and Fees Act, the municipal council sets the amounts by ordinance "under the conditions, procedure and within the limits" of the Act (Article 1(2)). Gifts between direct relatives and spouses are not taxed (Article 44(6)). > > **Check in your country** — Who sets local taxes where you live, the deadlines, and any discount for early payment. **Source:** Local Taxes and Fees Act (Bulgaria): https://lex.bg/laws/ldoc/2134174720 ## In depth in the modules - [Module 27](https://pecuvo.eu/en/modules/taxes-and-public-spending/) - [Module 20](https://pecuvo.eu/en/modules/income/) ## Related terms - [Property tax](https://pecuvo.eu/en/glossary/property-tax/) - [Vehicle tax](https://pecuvo.eu/en/glossary/vehicle-tax/) - [Waste collection fee](https://pecuvo.eu/en/glossary/waste-collection-fee/) - [Inheritance](https://pecuvo.eu/en/glossary/inheritance/) - [State and municipal budget](https://pecuvo.eu/en/glossary/public-budget/)