Income Tax

What is Income Tax?

Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. It is typically a progressive tax, meaning the rate increases as the amount of taxable income rises.

Why It Matters

• It is the primary source of revenue for most governments to fund public services and infrastructure.

• For individuals and businesses, it is often their largest annual tax obligation.

• Tax laws allow for various deductions and credits that can significantly reduce the final amount owed.