Taxation systems are crucial for funding government services and ensuring economic stability. They influence behaviour, investment, and income distribution. Different countries implement various taxation models, including progressive, regressive, and flat taxes. Recent trends show a growing focus on tax fairness and the role of technology in improving tax compliance. Understanding how taxation systems operate is essential for citizens and businesses alike, as they impact financial decisions and government policies. This article explores the types of taxation systems, their effects on the economy, and emerging trends in tax policy.