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

One of the similarities between the Canadian tax system and the U.S. tax system is that most income tax and benefit amounts in both countries are indexed to inflation (only a few countries adjust their income tax thresholds for inflation—out of 160 economies, 131 have no adjustment at all). —Kelly Phillips Erb, Forbes, 2 Nov. 2024

During the quarter, Apple paid a one-time income tax charge of $10.2 billion to resolve a long-running case dating back to 2016 over how the company handled taxes in Ireland. —Kif Leswing, CNBC, 31 Oct. 2024

Musk, who leads Tesla and SpaceX, has taken an active role as both a large donor and vocal proponent backing Trump. MORE: Trump proposes eliminating the income tax. —Max Zahn, ABC News, 30 Oct. 2024

That same year, the United States, led by Democratic President Woodrow Wilson, enacted the first peacetime income tax. —Ajay K. Mehrotra / Made By History, TIME, 29 Oct. 2024

Word History

First Known Use

1799, in the meaning defined above

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