Definition, Meaning & Synonyms

income-tax

Noun

/ˈɪnkʌm tæks/

Definition

A tax imposed on individuals or entities based on their earnings or income.

Examples

Many countries collect income tax to fund public services.
Freelancers often need to set aside money for income tax when they receive payments.
After filing her income tax return, she anticipated a refund due to her deductions.

Meaning

Income tax is a financial charge that governments levy on personal or corporate earnings. The amount of tax owed is typically calculated as a percentage of the income earned during a given period.