Income tax is a tax levied by the government on an individual's or entity's earnings. This tax is based on the income they receive, which can include wages, salaries, interest, dividends, and other forms of revenue. The amount of tax owed is usually calculated as a percentage of the income, with different rates or brackets applying depending on the level of earnings.
In most countries, income tax is a key source of revenue for the government, funding public services such as education, healthcare, and infrastructure. The specifics of income tax, including rates, exemptions, and deductions, vary widely from one country to another. For individuals, income tax can be progressive (with higher rates on higher income levels) or flat (a single rate applied to all income).
