Individual Income Tax

Individual income tax is a tax imposed by the government on the earnings of individuals. This includes wages, salaries, and other forms of income. Tax rates vary based on income levels, and individuals are required to file annual tax returns to report their earnings and calculate how much tax they owe. Deductions and credits can reduce the taxable income, lowering the total tax burden. The funds collected from individual income tax are used to finance public services such as education, infrastructure, and healthcare. Each country has its own rules and rates concerning individual income tax.