taxpayer

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noun tax·pay·er \ ˈtaks-ˌpā-ər \
Updated on: 26 Jul 2017

Definition of taxpayer

:one that pays or is liable for a tax

Recent Examples of taxpayer from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'taxpayer.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of taxpayer

1797


Financial Definition of TAXPAYER

taxpayer

What It Is

A taxpayer is a person or organization that must pay taxes to a federal, state, or local agency.

How It Works

For example, let's assume that Jane is an employee of Company XYZ. She earns $150,000 per year.

In addition to paying federal income taxes, unemployment taxes, Social Security taxes, and Medicare taxes, Jane will likely owe state and local income taxes, all of which will be withheld from her paycheck. When she receives her after-tax paycheck, she might spend it on gas for her car, groceries, clothes and utilities, all of which trigger more tax payments (in the form of sales, excise, gas and other taxes).

Why It Matters

Virtually every human being in America is a taxpayer at some point, even if he or she does not file an IRS Form 1040 or pay federal income taxes. People pay taxes when they pay their phone bills, buy airline tickets, use toll roads, buy gasoline, rent hotel rooms, get a fishing license or engage in other everyday activities. Children even pay sales taxes when they buy candy with allowance money.

It is important to note that for tax purposes, business entities are also taxpayers, which means their revenues and expenditures are subject to taxation.


TAXPAYER Defined for English Language Learners

taxpayer

play
noun

Definition of taxpayer for English Language Learners

  • : a person who pays taxes


TAXPAYER Defined for Kids

taxpayer

play
noun tax·pay·er \ ˈtaks-ˌpā-ər \

Definition of taxpayer for Students

:a person who pays or is responsible for paying a tax

Law Dictionary

taxpayer

noun tax·pay·er

legal Definition of taxpayer

:a person (as an individual or corporation) that pays or is liable for a tax

taxpaying

adjective


Seen and Heard

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