Individual income tax is a tax levied by the government on the income earned by individuals. This includes wages, salaries, and other forms of income such as interest and dividends. The amount of tax owed typically depends on the individual's income level, with higher earners often paying a larger percentage of their income in taxes. In many countries, including the United States, individuals must file an annual tax return to report their income and calculate their tax liability. Various deductions and credits may be available to reduce the overall tax burden, making the process of filing taxes more complex for some individuals.