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

For a team that will spend almost half a billion dollars on its player payroll and luxury tax this season, its most important trade deadline pickup could be a catcher making maybe $1 million.

From Los Angeles Times ● Jul. 18, 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

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

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 Irvin S. (Irvin Shrewsbury) Cobb