• Income tax is a type of tax that governments levy on income earned by businesses and individuals within their jurisdiction.
  • Income tax is used to fund government services, pay government obligations, and provide goods to citizens.
  • The federal government, many states, and local jurisdictions require income tax to be paid.
  • Personal income tax is a type of income tax that is levied on wages, salaries and other types of personal income.
  • Business income tax applies to corporations, partnerships, small businesses and self-employed people.