personal income tax

Personal income tax is a levy imposed by the government on individuals’ earnings, including wages, salaries, and other sources of income. It funds public services and infrastructure such as healthcare, education, and roads. The amount you pay depends on how much you earn, with higher incomes usually taxed at higher rates. Tax laws specify different brackets and deductions, which can reduce your taxable income. Paying income tax is a civic responsibility that helps maintain societal functions and public resources. It’s typically calculated annually and paid either through withholding from paychecks or direct payments to tax authorities.