: 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.
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South Carolina House Speaker Murrell Smith (R) introduced legislation last month, H. 4216, that would move South Carolina from a progressive income tax code with a top rate of 6.2% to a flat 3.99% income tax, with revenue triggers established to cut the rate to 2.49% in the coming years.—Patrick Gleason, Forbes.com, 25 Apr. 2025 This is just one of several measures Hungary has taken to support families—others include mortgage deductions, exemption from personal income tax, and a child care allowance for grandparents.—Thomas G. Moukawsher, MSNBC Newsweek, 24 Apr. 2025 Trump has suggested tariffs could potentially replace the income tax, even though economists warn that tariffs raise far less revenue and fall harder on lower-income households.—Bart Jansen, USA Today, 24 Apr. 2025 Establish a $500 state income tax credit for owners of a licensed family child care home starting in 2026.—Keith M. Phaneuf, Hartford Courant, 23 Apr. 2025 See All Example Sentences for income tax
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