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Tax income Meaning: Definition, Examples, and Translations

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tax income

[ˈɪnkʌm taks ]

Definition

Context #1 | Noun

financial

Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. It is usually calculated as a percentage of the taxable income earned by the taxpayer.

Synonyms

personal tax, tax on income.

Which Synonym Should You Choose?

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Word Description / Examples
tax income

This term seems to be a duplicate of 'tax income' and should be considered in the same context as described above.

  • Please refer to the 'tax income' entry for relevant context and examples
tax on income

This phrase is often used in a more explanatory or educational context where the goal is to describe the specific type of tax that is applied to earnings. It could appear in legal, academic, or instructional materials.

  • A tax on income ensures that everyone contributes a fair share to public services
  • Understanding how the tax on income is calculated can help in better financial planning
personal tax

Use this term when referring specifically to taxes levied on individuals rather than organizations or companies. It's suitable for discussions related to personal finance and government policies impacting citizens.

  • Personal tax rates have been adjusted this year
  • Understanding personal tax obligations is essential for effective financial planning

Examples of usage

  • The government collects income tax from employees' salaries.
  • Entrepreneurs need to file their income tax returns annually.
  • Income tax rates may vary depending on the amount of income earned.

Translations

To see the translation, please select a language from the options available.

Origin of 'tax income'

The concept of income tax has a long history, with ancient civilizations such as Egypt, Greece, and Rome having some form of income taxation. However, modern income tax systems began to emerge in the 19th century, with the United Kingdom introducing the first modern income tax law in 1842. Over time, income tax has become a significant source of revenue for governments around the world, playing a crucial role in financing public services and government activities.