income tax

noun

: a tax on the net income of an individual or a business

Examples of income tax in a Sentence

Federal income tax will be deducted from your pay.

The new law will lower income taxes for most taxpayers.

Recent Examples on the Web

So, over a third of Americans’ individual income tax dollars were siphoned away and not used for the provision of government goods, services, and transfer payments. — Steve H. Hanke, Fortune, 15 July 2026

While the cost of living in Southgate is about five percent higher than the national average, Florida residents have no income tax, a significant saving for many, with no levy on Social Security, income, or withdrawals from pre-tax accounts. — Patricia Doherty, Travel + Leisure, 13 July 2026

The program allows businesses of all types to compete for more than $180 million in income tax credits during one of three application periods each year. — Sofia Williams, Sacbee.com, 13 July 2026

The stakes could grow if Missouri voters approve a pending constitutional amendment to phase out the state's individual income tax, because players earning millions could save substantial amounts by working in Missouri rather than Kansas. — Kelly Phillips Erb, Forbes.com, 11 July 2026

Word History

First Known Use

1799, in the meaning defined above

Rhymes for income tax

• anticlimax
• counterattacks
• hemothorax
• mesothorax
• metathorax
• almanacs
• carrybacks
• haversacks
• lumberjacks
• maniacs
• microcracks
• minimax

Kids Definition

income tax

noun

ˈin-(ˌ)kəm-

: a tax on the income of a person or business

Legal Definition

income tax

noun

: a tax on the net income of an individual or a business compare excise, property tax