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Fiscal federalism is a by-product of federalism. Federalism is a political concept in which power to govern is shared between national and sub-national Governments creating what is often called a federation. Federalism is a political concept in which the power to govern is shared between Federal, States and Local Governments, creating what is often called a federation. Fiscal federalism is characterized by fiscal relations between central and lower levels of Government. The progression in taxation in Nigeria is from personal income tax to taxation on other sources such as petroleum, companies etc. Personal Income Tax Act identifies taxable persons, chargeable incomes determines assessable income and taxes that income. The Act also determines the residence of the taxpayer for the purpose of payment and or collection of personal income tax. This book contains primary and secondary sourced materials, such as laws, statutes, and other resource materials. This book revealed the aspectof personal income that raises concerns on the ownership of funds collected by State Governments through the State Boards of Internal Revenue under the personal income tax regime.