income tax

noun

: a tax on the net income of an individual or a business

Examples of income tax in a Sentence

Federal income tax will be deducted from your pay. The new law will lower income taxes for most taxpayers.
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In 2023, the BBC’s offices in India were raided by income tax authorities, coming soon after a controversial BBC documentary titled India: The Modi Question, which was critical of the country’s President. Sara Merican, Deadline, 20 Jan. 2025 In Switzerland, people pay federal income tax rates ranging from 0 to 11.5%, but that doesn’t include local taxes, according to H&R Block. Celia Fernandez, CNBC, 18 Jan. 2025 In the long run, at best the taxpayer could get a deferral of taxes and then an eventual arbitrage between ordinary income tax rates and long-term capital gains rates. Jay Adkisson, Forbes, 18 Jan. 2025 That includes protecting individual provisions that are set to expire later this year, which, if lapsed, would mean higher income tax rates for most earners, a lower standard deduction and a rollback of the cap on the state and local tax (SALT) deduction, among other changes. Aris Folley, The Hill, 17 Jan. 2025 See all Example Sentences for income tax 

Word History

First Known Use

1799, in the meaning defined above

Time Traveler
The first known use of income tax was in 1799

Dictionary Entries Near income tax

Cite this Entry

“Income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/income%20tax. Accessed 24 Jan. 2025.

Kids Definition

income tax

noun
ˈin-(ˌ)kəm-
: a tax on the income of a person or business

Legal Definition

income tax

noun
: a tax on the net income of an individual or a business compare excise, property tax
Last Updated: - Updated example sentences
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