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.
The state has about a $4.6 billion budget, enough to hand out $1.3 billion in income tax cuts this year for middle-class residents and getting rid of the state’s tax on electricity usage. Charles Selle, Chicago Tribune, 7 July 2025 The income tax resulting from the sale of farmland to a qualified farmer can be deferred and paid in four annual installments. Martin Shenkman, Forbes.com, 6 July 2025 In addition to extending the tax cuts from the 2017 tax bill, Americans who live in high-tax states such as California, New York and New Jersey will get a bigger income tax deduction for state and local taxes, known as SALT. Jim Sergent, USA Today, 5 July 2025 There will be some new ones, notably bigger deductions for qualifying seniors and no income tax on tips or overtime. David Lightman updated July 3, Sacbee.com, 3 July 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

Cite this Entry

“Income tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/income%20tax. Accessed 16 Jul. 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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