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

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

Zhao points to instances where companies have threatened governments or regions with economic consequences, such as withholding tax revenue, if regulations are imposed. —Hessie Jones, Forbes.com, 3 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