Income taxes are a type of tax imposed by the government on the income earned by individuals and businesses. This tax is usually calculated as a percentage of the income, which can include wages, salaries, and profits. The money collected from income taxes is used to fund public services such as education, healthcare, and infrastructure. In many countries, income taxes are progressive, meaning that higher earners pay a larger percentage of their income compared to lower earners. Taxpayers are required to file annual returns to report their income and calculate the amount owed or any refund due.