The main advantages of direct tax are as follows:

1. Economical: Direct taxes are economical. The cost of collecting direct taxes is very low as these taxes are usually collected at the source. For example, income-tax is deducted every month from the salary of a person. This saves both time and expenses of the tax-collecting officials.
2. Equitable: Since the burden of direct taxes cannot be shifted, lower incomes can be exempted while higher incomes can be taxed at a higher rate. In this way, equality of sacrifice can be attained through progressive taxes.
3. Elastic: Direct taxes are elastic because the government is able to obtain more yields from them with every increase in tax rates.
4. Certain: A direct tax confirms with the principle of certainty. On the one hand, the tax-payers are certain as to how much they are expected to pay; and on the other hand, the government can estimate properly the yields from the direct taxes and can adjust its income and expenditure.
5. Educative Value: Direct taxes are helpful in creating civic consciousness in the minds of the taxpayers. Taxpayers are aware of the amount collected from them and can check the wastage in public expenditure.