Tax savings refers to the amount of money an individual or business is able to save on their taxes by taking advantage of certain deductions, credits, and exemptions allowed by the government. This can include a variety of expenses such as mortgage interest, charitable contributions, education costs, and healthcare expenditures, among others. By reducing one's overall taxable income through these legal means, an individual or business is able to lower their overall tax burden and therefore save money on the amount they owe in taxes.