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

In 2020, Diana Parks and her then 15-year-old daughter Ania moved into low-income tax credit housing at Apex Meridian West. — Olivia Young, CBS News, 17 Sep. 2026

In July, China imposed a 20% income tax on assets moved into offshore trusts since 2023, closing a longstanding loophole used by wealthy families for asset protection and succession planning. — Anniek Bao, CNBC, 15 Sep. 2026

In the process, the bill introduced a novelty in American history by leaving the top rate of corporation tax, thirty-four per cent, higher than the top rate of federal income tax, twenty-eight per cent. — John Lanchester, New Yorker, 14 Sep. 2026

Revenues include income tax money that the county can assign to different communities. — Maya Wilkins, Chicago Tribune, 11 Sep. 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