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 West Virginia Legislature was initially called into a special session Monday to consider Gov. Jim Justice's proposal to reduce personal income tax rates. Mary Kekatos, ABC News, 26 July 2022 Whitmer, a Democrat, has called for targeted cuts, and Republicans want broader ones, including lower individual and corporate income tax rates. From Usa Today Network And Wire Reports, USA TODAY, 22 July 2022 Why Tech Billionaires Pay Less Than Hedge-Fund Managers With so many options to reduce taxes, the richest Americans often manage low income tax rates. Paul Kiel, ProPublica, 29 June 2022 Cutting the capital-gains rate might have done even more to boost the demand for money than Reagan’s 25% cut in regular income tax rates. Richard Vigilante, WSJ, 16 June 2022 The gain of more than $1 million last year amounted to short-term profits that are taxed at regular income tax rates. Susan Tompor, Detroit Free Press, 7 Apr. 2022 On the other side of the equation, many of the states with the highest personal income tax rates, such as New York and California, experienced massive net domestic out-migration last year. Jonathan Williams, National Review, 28 Mar. 2022 Though not a direct response to rising inflation, several states, from Colorado to Georgia to South Carolina, have also proposed cutting state income tax rates in response to state budget surpluses. Alicia Adamczyk, Fortune, 25 Mar. 2022 If all of the cuts do get phased in, Indiana would have one of the lowest income tax rates in the country. Kaitlin Lange, The Indianapolis Star, 16 Mar. 2022 See More

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.

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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Dictionary Entries Near income tax

income splitting

income tax

(income) tax return

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Statistics for income tax

Last Updated

7 Aug 2022

Cite this Entry

“Income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/income%20tax. Accessed 11 Aug. 2022.

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More Definitions for income tax

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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