What Is Income Tax?
A tax paid on earned income, deducted from your salary or paid on profit.
Definition
Income tax is a tax levied by governments on the income of individuals. For employees it is usually deducted from gross salary before payment. Rates and rules differ significantly by country and can depend on income level, residency, marital status and allowances.
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Open Debt-to-Income Ratio CalculatorOther glossary terms
Gross Salary
Your salary before taxes and deductions are removed.
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Your salary after all taxes and deductions are removed — the amount you actually receive.
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Compulsory contributions paid by employees and employers to fund public welfare programmes.
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Money set aside from your salary into a pension fund for retirement.
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