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 second type of problem involved individual taxpayers who faced tax time headaches when trying to claim the credit when filing 2024 income tax returns. Susan Tompor, USA Today, 31 Mar. 2025 Arizona and North Dakota (both 2.5%) have the lowest among states with an income tax. Alex Fitzpatrick, Axios, 28 Mar. 2025 The company reported an increase in income tax provision to $2.3 million from a benefit of $1.7 million in the previous year, primarily due to the establishment of a valuation allowance against deferred tax assets. Quartz Intelligence Newsroom, Quartz, 27 Mar. 2025 The analysis was based on federal income tax returns filed from January 1 through December 31, 2023, for tax year 2022 from the IRS Statistics of Income program. Paul Du Quenoy, MSNBC Newsweek, 27 Mar. 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 11 Apr. 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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