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

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

The second is increased withholding tax rates that would go up 5 percent a year, up to a potential cap of 20 percent over the statutory rate. —Tax Notes Staff, Forbes.com, 24 June 2025

Import taxes on movies may look in some way like some sort of withholding tax on royalties, for example. —Tax Notes Staff, Forbes.com, 20 May 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