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The Monopoly income tax rule is even more annoying than the luxury tax. I have felt this way since the day I passed GO and landed in the income tax space. Your reward? You get nothing.
Want to learn more about the Monopoly income tax rule? This article has all you need.
What is the Monopoly Income Tax?
Monopoly income tax is the 4th space in most Monopoly editions. The Monopoly income tax demands that you pay $200. On some boards, you might be given other options, such as paying 10% of your assets.
When you land on the income tax space, the bank immediately demands cash from you. You cannot delay or postpone payment. It must be made immediately.
As you would expect, this income tax rule can have a negative impact, especially in certain periods of the game.
Monopoly Income Tax Rules and Strategy
As mentioned earlier, the rule states that you must pay $200 when you land on this space. This money is paid immediately to the bank.
If you are unable to pay it, you have some options. First, you are allowed to trade or mortgage your properties to get the cash. You can also sell off houses to pay. However, this is usually unnecessary as most people pass GO just before they land on the space. That’s why it’s called “tax income” in the first place.
However, If you are still unable to pay, you will be bankrupt and have to leave the game.
The biggest problem with this space is that it is too close to GO. Thus, people often land on it when they pass GO, robbing them of their salary of $200. Another irritating thing is that it is right next to the two least valuable properties in the game.
So, unlike the luxury tax space, the income tax space is always a problem. One scenario it might be a blessing is if the two least valuable properties next to it have been upgraded to hotels. If they have, their rent is now $250.
Another less likely scenario might be getting double sixes just before Park Place and Board Walk. This might make you land in this space. If there are properties on Board Walk, landing on income tax won’t look too bad.
Regardless, this is a sucker punch you’ll rather avoid.
The Option of 10%
In some older Monopoly editions, you have the option of paying 10% of all your assets. Now, this is where it gets tricky. You MUST make a quick decision and are not allowed to mull over the values involved.
For this reason, it’s often advisable to have a rough estimate of your worth in the game. I’d advise that you always pick the 10% option at the beginning of the game.
Of course, that could all change if you start getting really valuable houses and hotels. During the end game, you should almost always pick the $200 option. This advice might vary if you don’t have a lot of properties.
Income Tax and House Rules
There’s always the option of playing with house rules. This can affect how income tax rules work. One of the most popular house rules is placing all fees and fines at the center of the board. The money gathered is given to anyone who lands on free parking.
Another house rule could be simply removing income tax altogether. This might be a good option if you’re fed up with losing $200 whenever you pass GO. You can also imitate the previous Monopoly editions by changing this rule to a percentage of total assets owned.
Monopoly Income Tax in Other Monopoly Editions
Monopoly comes in different shades/editions. Some editions have tweaked income tax or its rules. I have compiled a list of some of these editions.
Monopoly (The Original Edition)
It’s only fitting to start with Monopoly’s first edition. Players had to pay $300 when they landed on income tax. This rule was the norm until the early 2000s when it was changed to $200.
Monopoly Here and Now Edition
Players have to pay $2 million or 10% of their assets when they land on income tax. The good thing is that this edition has a certain value attached to money.
Thus, most players can easily afford to pay $2 million.
Monopoly Star Wars Edition
We are specifically referring to the 1998 edition of the Monopoly star wars. Players were asked to pay a certain percentage. Thus, it wasn’t exactly in dollars. However, when we do the maths, it fell anywhere from $0 to $500. The same thing applies to the Monopoly Pogo edition.
Frequently Asked Questions About Monopoly Income Tax Rule
What is the Rule Money in Monopoly?
The rule money in Monopoly refers to how much money you start with. This amount is $1500 and is split across all Monopoly currencies.
Do you Get $400 if You Land on GO in Monopoly?
No, the rules state that you collect $200 even when you land on GO. However, with unofficial house rules, these rules can always be tweaked.
What is the Monopoly Luxury Tax?
The monopoly luxury tax is the tax space between Board Walk and Park Place. If you land in this space, you have to pay the bank $100. You can click that link to learn more about Monopoly Luxury tax
