income tax

noun

1. a tax levied on incomes, especially an annual government tax on personal incomes.

income tax

noun

1. a personal tax, usually progressive, levied on annual income subject to certain deductions

Word History and Origins

Origin of income tax¹

First recorded in 1790–1800

Example Sentences

However, you will pay income tax on the money you withdraw from your traditional IRA and you will lose future returns if you take money from your IRA or your Roth.

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If you look at earnings, pensioners still have to pay income tax but are no longer subject to employee National Insurance.

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In that case, Carroll said their federal income tax bill would be $8,540.

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“Equities are now a bigger part of US household net worth than real estate and investment income tax could be as big as a quarter of government revenue,” he writes.

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This serves to defer all the income taxes due on withdrawals and allows you manage the withdrawals.

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