What is a direct tax on personal income called?

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2026-03-08 11:55

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A direct tax on personal income is called an income tax. This tax is levied directly on an individual's earnings, which can include wages, salaries, and other forms of income. The amount of income tax owed typically depends on the taxpayer's income level and applicable tax rates. Income tax can be progressive, meaning higher earners pay a higher percentage compared to lower earners.

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