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luxury tax

American  

noun

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


Etymology

Origin of luxury tax

First recorded in 1900–05

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The Los Angeles Dodgers, for instance, have a luxury tax payroll of around $420 million as they look to win their third consecutive World Series.

From The Wall Street Journal • Jun. 1, 2026

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 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

They spent more than $350 million to build their roster, not counting the enormous luxury tax bill that will increase their overall expenditures to over a half-billion dollars.

From The Wall Street Journal • Oct. 12, 2025

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 Cobb, Irvin S. (Irvin Shrewsbury)

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