: 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.
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The Golden State’s extreme reliance on the personal income tax means that when incomes are high in California, revenue collections are strong, but when the economy slows and incomes fall, state revenue weakens drastically too.—Lanhee J. Chen, Mercury News, 31 Jan. 2026 Mamdani once said the higher personal income tax and corporate tax rate were needed for child care.—New York Daily News Editorial Board, New York Daily News, 30 Jan. 2026 Opponents say an income tax would violate the state constitution and existing law.—Robert Frank, CNBC, 30 Jan. 2026 In recent years, lawmakers reduced the state income tax and eliminated the state sales tax on groceries.—Barbara Hoberock, Oklahoma Voice, 30 Jan. 2026 See All Example Sentences for income tax