Income tax is a form of taxation imposed by governments on individuals and entities based on their earnings or income. It is one of the primary sources of revenue for governments, which is used to fund public services, infrastructure, social welfare programs, and other government expenditures.

Individuals are typically required to pay income tax on various sources of income, including wages, salaries, bonuses, rental income, interest, dividends, and capital gains. Businesses and corporations also pay income tax on their profits, which is the difference between their total revenue and expenses.

Governments use a variety of tax laws, regulations, and structures to determine how much income tax an individual or entity owes. These may include progressive tax rates, where higher income levels are subject to higher tax rates, or flat tax rates, where everyone pays the same percentage of their income regardless of how much they earn.

To ensure compliance, individuals and businesses are often required to report their income and deductions accurately, and they may need to file annual tax returns by a specific deadline. Tax authorities may also provide deductions, credits, or exemptions to certain individuals or activities, which can help reduce the overall tax burden.