Tax Jurisdiction

Tax jurisdiction refers to the geographic area or authority within which a government has the legal power to impose and collect taxes. It determines where and how different taxes, such as income, sales, or property taxes, are applied. For individuals and businesses, understanding tax jurisdiction is essential because it affects their tax obligations and reporting requirements based on where they live, operate, or earn income. Essentially, it defines the boundaries within which a specific government entity has the legal right to collect taxes.