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

Automakers have had a torrid time as they contend with a muted transition to electric vehicles, U.S. tariffs and a tough Chinese market characterized by intense competition and a new luxury tax policy.

From The Wall Street Journal • Apr. 10, 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 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 CBT, often referred to as a "luxury tax," sets thresholds for total payroll.

From Barron's • Jan. 23, 2026

The only other source of additional revenue in immediate contemplation appears to be the luxury tax.

From Rebuilding Britain A Survey of Problems of Reconstruction After the World War by Hopkinson, Alfred, Sir