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 Palestinian leaders say its ability to exercise effective governance has been effectively blocked by Israeli restrictions, which have included withholding tax revenues due under the Oslo accords. Ali Sawafta, The Christian Science Monitor, 26 Feb. 2024 The legislation lifts the current $800 million limit on the total amount of capture income and withholding tax revenues to $1.6 billion. Detroit Free Press, 18 July 2023 The release of $600,000 in withholding tax tied to unrepatriated earnings of its Russian subsidiary increased its tax rate, Kevin Daniels, the company’s chief accounting officer, said in a June 2 letter. Mark Maurer, WSJ, 26 July 2022 Later in the day, the governor’s office announced a discrepancy in the budget numbers occurred because a state payroll withholding tax of nearly $2 million was tagged for fiscal year 2021 when it should have been tagged for fiscal year 2020, which caused an inflation in prospective money for 2020. Tyler Arnold, Washington Examiner, 2 July 2020 When a studio pays an actor $1 million, it’s required to deduct a 25 percent withholding tax. Mike Barnes, The Hollywood Reporter, 15 Aug. 2022 Regardless of which option the player takes, the IRS enforces a minimum 24% federal withholding tax on lottery winnings. George Petras, USA TODAY, 10 Jan. 2023 In several states, including North Carolina, Ohio, and New York, public university systems refer patients to other state agencies for legal action or withholding tax refunds. Noam N. Levey, Anchorage Daily News, 27 Dec. 2022 The changes raise the maximum level of future state income tax and state withholding tax that can be captured at the four development sites — then reimbursed to Bedrock — to 100% from 50%. Jc Reindl, Detroit Free Press, 23 Aug. 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'withholding tax.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1940, in the meaning defined above

Time Traveler
The first known use of withholding tax was in 1940

Dictionary Entries Near withholding tax

Cite this Entry

“Withholding tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/withholding%20tax. Accessed 19 Mar. 2024.

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

More from Merriam-Webster on withholding tax

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!