income tax

Definition of "income tax"
  1. A tax levied on a person or business's net income after subtracting certain expenses and payments
How to use "income tax" in a sentence
  1. After calculating their income and expenses for the year, the couple found they owed a substantial income tax.
  2. Income tax deductions can help reduce the overall amount owed.
  3. Her small business was required to file and pay income tax at both state and federal levels.

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