Taxes are an essential part of our financial lives, yet they often seem complicated and overwhelming. Understanding the basics of taxes and how to manage them can significantly reduce stress and help you make the most of your hard-earned money. Let's break down the key aspects of taxes and how you can handle them effectively. What Are Taxes? Taxes are mandatory contributions levied by the government on individuals and businesses to fund public services and infrastructure. These can include income tax, sales tax, property tax, and more. Each type of tax serves a specific purpose, helping to maintain and improve various sectors such as healthcare, education, and transportation. Types of Taxes Income Tax: This is a tax on your earnings from various sources like salaries, investments, and business profits. It's usually progressive, meaning higher income earners pay a higher rate. Sales Tax : Applied to the sale of goods and services, this tax is typically a percentage added to th