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

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

MLB is the only major North American league not to have a salary cap, instead implementing a luxury tax for teams that exceed a payroll threshold.

From Barron's • Jan. 16, 2026

Including their expected luxury tax bill this winter, Dodgers owner Mark Walter—fresh off his purchase of the Los Angeles Lakers—and his partners will pay roughly a half-billion dollars.

From The Wall Street Journal • Nov. 2, 2025

Discover which of the following taxes are levied in your state: general property tax, income tax, inheritance tax, poll tax, license tax, transaction tax, sales tax, luxury tax, mortgage tax, franchise tax, excess profits tax.

From Problems in American Democracy by Williamson, Thames Ross