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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Since that can have important income tax implications, and because the potential impact of different valuations on beneficiaries, many CPAs or other tax preparers (e.g., the attorney handling the estate) opt to get real numbers. Martin Shenkman, Forbes.com, 19 May 2025 The package would cut taxes deeply – essentially making permanent the sweeping individual income tax provisions of Trump’s 2017 Tax Cuts and Jobs Act, as well as adding several temporary tax breaks to fulfill the president’s campaign promises. Elisabeth Buchwald, CNN Money, 16 May 2025 Columbia also has the lowest income tax rate in Missouri, which covers most filers. Joseph Hernandez, Kansas City Star, 14 May 2025 Only about half of Social Security recipients pay no income tax on their benefits because their taxable incomes are too low. David Lightman, Sacbee.com, 14 May 2025 See All Example Sentences for income tax

Word History

First Known Use

1799, in the meaning defined above

Time Traveler
The first known use of income tax was in 1799

Cite this Entry

“Income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/income%20tax. Accessed 27 May. 2025.

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
Last Updated: - Updated example sentences
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