Tax law involves the taxation of income and property acquired through personal and professional efforts. The area of tax law effects most areas of life. In addition to income tax, there is sales tax, gift tax, inheritance tax, capital gains tax, property tax and many other areas of tax.
Tax law is divided into both federal tax and state tax.
The federal government and the state governments each have a tax laws that are independent, and in some cases, different from one another. The more assets that an individual owns, the more complicated the tax law becomes. A tax base is the difference between a person's taxable income for the year and the person's deductions. A person may choose to itemize their deductions or take the standard deduction that is provided by the federal or state government. Tax rates are mathematical tables that determine the amount of tax that an individual owes.