Interest Tax

Interest tax refers to the tax applied to interest income earned from various sources, such as savings accounts, bonds, or loans. When individuals or businesses earn interest, that income is generally subject to taxation by the government. The tax rate can vary based on factors like income level and local tax laws. Understanding how interest tax works helps individuals and businesses to effectively manage their finances and savings, as it impacts the actual earnings they retain after taxes are paid. Overall, it's a consideration for anyone earning interest on their investments or savings.