That also varies depending on where you live and work. Here's a primer on income tax: what it is, how it works, how to calculate it and which states don't have it.

The effective tax rate is the percent of income or pre-tax profits that an individual or a corporation pays in taxes.

From April 1, 2025, there is zero tax payable on the taxable income up to Rs 12 lakh. This will happen if an individual opts for the new tax regime for FY 2025-26.

Learn how to calculate payroll taxes in these easy steps. Follow our guide for accurate tax deductions, tips, and tools to simplify payroll processing.

Calculate income tax withholding based on the total amount, using tax tables, schedules or payroll software. Subtract the tax already withheld or to be withheld from regular wages.

Learn how to calculate your annual income, whether you're salaried, hourly, or self-employed. Discover tips for accurate calculations and understanding your financial picture.