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

The exact timing and size of the revenue bump remain uncertain, particularly because employee stock sales may be subject to vesting schedules, lockups, and staged sales, but the IPO could still generate meaningful personal income tax revenue for California. —Kelly Phillips Erb, Forbes.com, 13 June 2026

The proposals include a 30% income tax hike for three years on companies in the Caribbean country that earn more than $17 million a year. —ABC News, 11 June 2026

Buyers may stretch their savings further by pairing the program with a Mortgage Credit Certificate, which can reduce federal income tax liability and free up more household budget for the new mortgage. —Fort Worth Star-Telegram, 10 June 2026

This transient population resides in France but works and often pays income tax in Switzerland. —Jessi Jezewska Stevens, New Yorker, 8 June 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