Tax Jurisdictions

Tax jurisdictions refer to the specific geographic areas where a particular tax authority has the power to impose taxes. These can include countries, states, or municipalities, each with its own tax laws and rates. For example, a person living in New York City is subject to federal, state, and city taxes, each managed by different authorities. Understanding tax jurisdictions is crucial for individuals and businesses to ensure proper compliance with tax obligations and to know which taxes they are responsible for paying based on their location and activities.