A tax jurisdiction is a geographic area that has its own unique taxes and regulations, commonly referred to as a tax jurisdiction. This could be referring to a country, state, province, city, or special economic zone with the authority to create and enforce its own tax laws. Tax jurisdictions can be very different depending on their scope and authority. These are some commonly used types:

• National tax jurisdictions are responsible for covering the entirety of the country and are governed by national tax laws. The list of examples includes federal taxes in the United States, income tax in India, or VAT in the European Union.
• The laws of a specific state or province govern tax jurisdictions. Usually, they consist of taxes such as sales tax, property tax, and state income taxes, such as California's state tax system in the U.S. or Ontario's tax rules in Canada.
• Taxes such as municipal property taxes, local sales taxes, or city-specific taxes are imposed by local governments, such as cities or counties. As an example, New York City has its own taxes on top of the state taxes.
• The purpose of Special Economic Zones (SEZs) is to promote economic activity by designating areas within a country with distinct tax and regulatory frameworks. There are instances such as Shenzhen in China or Dubai International Financial Centre.
• Treaties or agreements between nations, such as the OECD guidelines for multinational corporations, govern cross-border taxation in international tax jurisdictions.
• Offshore tax jurisdictions, which include Bermuda or the Cayman Islands, have favorable tax laws that entice foreign investment.