Current year tax is the total amount of income tax an individual or business must pay for the present financial year, calculated based on their assessable income and applicable tax rates.

Assessable income can include salaries, wages, business profits, dividends, interest, and other income sources. From this amount, taxpayers can subtract eligible deductions such as work-related expenses, charitable donations, and investment costs, as well as apply any available tax offsets or credits. The resulting figure is the tax payable for the year.

Understanding current year tax obligations is essential for financial planning, avoiding underpayment penalties, and ensuring timely submission of accurate tax returns.