income tax

noun

Definition of income tax

: 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 The customer can use their receipt to make an itemized deduction on their federal income tax. Devon Link, USA TODAY, 11 June 2021 That approach would move the tax system away from a corporate income tax toward a cash flow tax, long favoured by economists. Daniel Tenreiro, National Review, 10 June 2021 But notably, states with no income tax (Florida, Nevada, Tennessee and Wyoming) made up four of the 10 states with the largest income gains. Allysia Finley And Kate Lavoie, WSJ, 10 June 2021 Among the higher taxes Lamont opposed were a capital gains tax increase of more than 25% and a new consumption tax on the wealthy that Republicans said was an increase in the income tax. Stephen Singer, courant.com, 8 June 2021 Executives regularly tout business-friendly policies, including light regulation, tort reform and the lack of a state income tax. Dallas News, 6 June 2021 Income from a pension, 401(k), IRA or any other type of retirement account is all taxed at the North Carolina state income tax rate of 5.25% and the state doesn’t allow deductions on any type of retirement income. Robert Powell, USA TODAY, 3 June 2021 New Yorkers and Californians are moving to Florida in droves, attracted by less-expensive homes, sunshine and open spaces, and zero state income tax. Chad Van Horn, sun-sentinel.com, 3 June 2021 Another key priority for Democrats is a new child tax credit against the state income tax. Christopher Keating, courant.com, 2 June 2021

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'income tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of income tax

1799, in the meaning defined above

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Time Traveler for income tax

Time Traveler

The first known use of income tax was in 1799

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Statistics for income tax

Last Updated

20 Jun 2021

Cite this Entry

“Income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/income%20tax. Accessed 22 Jun. 2021.

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More Definitions for income tax

income tax

noun

English Language Learners Definition of income tax

: a tax paid on the money that a person or business receives as income

income tax

noun

Kids Definition of income tax

: a tax on the income of a person or business

income tax

noun

Legal Definition of income tax

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

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