Which type of tax is levied on the transfer of wealth between taxpayers?

The type of tax levied on the transfer of wealth between taxpayers is the transfer tax. Transfer taxes are imposed on the transfer of property or wealth, which may occur through various means such as inheritance, gifts, or sales of property. This tax is particularly concerned with the act of transferring assets from one individual to another, making it highly relevant in contexts such as estate planning or gift giving.

In contrast, income tax is assessed on an individual's or corporation's earnings, sales tax applies to the purchase of goods and services, and capital gains tax is charged on the profit made from the sale of assets or investments. While each of these taxes applies in different situations, they do not specifically target the act of transferring wealth in the way that transfer taxes do. This distinction clarifies why transfer tax is the correct choice in this context.