withholding tax

noun

: a deduction (as from wages, fees, or dividends) levied at a source of income as advance payment on income tax

Examples of withholding tax in a Sentence

Recent Examples on the Web

Non-qualified earnings face the 30% withholding tax for NRAs, plus a 10% penalty if under 59½, unless an exception applies. —Virginia La Torre Jeker, Forbes.com, 11 Aug. 2025

But her defiance drew a warning from Idaho Attorney General Raúl Labrador of potential consequences if legislators update the law to include penalties such as the state withholding tax money. —Idaho Statesman, 6 July 2025

Once in default, the full remaining balance becomes immediately due, and the government can take action to recover the debt, such as garnishing wages or withholding tax refunds. —Marley Malenfant, Austin American Statesman, 22 Apr. 2025

Under an amendment to the federal law effective Jan. 3, the social security withholding tax of 5.85 percent is being levied against the first $13,200 of salaries and wages. —Bernice Hoffman, Twin Cities, 7 Feb. 2025

Word History

First Known Use

1940, in the meaning defined above

Rhymes for withholding tax

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

Kids Definition

withholding tax

noun

: a deduction (as from one's wages) taken at a source of income (as one's employer) as an advance payment of income tax

Legal Definition

withholding tax

noun

with·​hold·​ing tax

: a deduction (as from wages, fees, or dividends) levied at a source of income as advance payment on income tax