What happens to the taxes during inflation?

During inflation, the real value of money decreases, which can affect tax revenues and liabilities. As prices rise, nominal incomes may also increase, potentially pushing taxpayers into higher tax brackets, a phenomenon known as "bracket creep." Additionally, if tax rates remain unchanged, the government may collect more revenue in nominal terms, but the purchasing power of that revenue diminishes. Overall, inflation can complicate tax policy and impact both government budgets and individual taxpayers' financial situations.