Income Tax

An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax.

Individual income taxes often tax the total income of the individual, with some deductions permitted, while corporate income taxes often tax net income. Net income is the difference between gross receipts, expenses, and additional write-offs. Various income tax systems exist. Tax rates may be progressive, regressive, or flat. Different countries have different tax systems.