Tax liability refers to the amount of taxes that an individual or a business is legally obligated to pay to the government. It includes all the income, sales and other taxes that are due based on the financial situation of the person or entity in question. Tax liabilities can be calculated by taking into account various factors such as income, deductions, exemptions, and credits. The amount owed may vary depending on the type of taxpayer (individual, corporation, partnership) and their specific circumstances. It is important for individuals and businesses to understand their tax liabilities in order to properly plan and pay any outstanding amounts. Failure to do so can result in penalties or interest charges.