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

Spend less time talking about tips, which Colorado conforms to and won’t be subject to state or federal income tax up to the level designated in HR1 and instead focus on lowering interest rates, costs and bringing down the price of goods ahead of Christmas by eliminating these draconian tariffs. —Mandy Taheri, MSNBC Newsweek, 11 Dec. 2025

Texas also does not have state income tax, meaning retirees’ money stretches further here. —Amanda Ogle, Travel + Leisure, 7 Dec. 2025

Texas passed a 2019 constitutional amendment banning a personal income tax, so that route is unlikely. —Fort Worth Star-Telegram, 5 Dec. 2025

Expect to face far more work and confusion when trying to figure out what income can — and cannot — be deducted for qualifying tips or overtime pay on 2025 federal income tax returns. —Susan Tompor, USA Today, 4 Dec. 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