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

With exceptions, including those for education and some home-buying expenses, money taken out before age 59½ is subject to income tax plus a 10% early withdrawal penalty. — Ryan Ermey, CNBC, 18 Aug. 2026

The state’s Legislative Analyst’s Office notes that billionaire wealth can consist of stocks, businesses, and other investments rather than cash, making a wealth tax fundamentally different from an income tax. — Joshua Hong, Fortune, 17 Aug. 2026

The selections were based on combined income tax, Social Security taxation, pension taxation, sales tax, and property tax. — Patricia Doherty, Travel + Leisure, 16 Aug. 2026

This created a major problem in the late 19th century when Congress enacted a new federal income tax. — Kelly Phillips Erb, Forbes.com, 15 Aug. 2026

Word History

First Known Use

1799, in the meaning defined above

Rhymes for income tax

• anticlimax
• counterattacks
• hemothorax
• mesothorax
• metathorax
• almanacs
• carrybacks
• haversacks
• lumberjacks
• maniacs
• microcracks
• minimax

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