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

On top of that, Joong-keun is proposing the state implement a new tax deduction system to waive corporate and income tax so the employees can receive full benefits of the parenting incentives and more companies can follow suit. —Eleanor Pringle, Fortune, 16 Oct. 2025

Continue reading … TED JENKIN – Should all 50 states eliminate income tax? —FOXNews.com, 16 Oct. 2025

By comparison, investments held for one year or less are short-term, subject to regular income tax rates. —Kate Dore, Cfp®, Ea, CNBC, 14 Oct. 2025

Most Americans supported increasing income tax rates for upper-income Americans (63 percent) and increasing tax revenues by making major changes to the federal tax code (54 percent), but the support was largely concentrated among Democrats and independents, not Republicans. —Suzanne Blake, MSNBC Newsweek, 14 Oct. 2025

Word History

First Known Use

1799, in the meaning defined above

Rhymes for income tax

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

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