luxury tax

American  

noun

1. a tax on certain goods or services not considered essential and usually relatively high in price.

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Etymology

Origin of luxury tax

First recorded in 1900–05

Example Sentences

See Examples For:

luxury tax

In the Premier League that will be 85%, though it is possible to spend as much as 115% in the first year and pay what is in effect a luxury tax.

From BBC ● Mar. 23, 2026

The Dodgers won their second consecutive World Series last year with a star-studded roster that cost more than a half-billion dollars between payroll and luxury tax payments for those high salaries.

From The Wall Street Journal ● Feb. 3, 2026

The ban is expected to cost George about $11.7 million of his season salary and save the 76ers about $5 million in luxury tax payments under the league's salary cap system.

From Barron's ● Jan. 31, 2026

What does MLB do with the luxury tax revenue?

From Los Angeles Times ● Jan. 16, 2026

In a first-rate place it was, of course, impossible to get any sort of meal for five francs, or ten francs either; especially after the ten per cent luxury tax had been tacked on.

From Eating in Two or Three Languages by Irvin S. (Irvin Shrewsbury) Cobb