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 CBT, often referred to as a "luxury tax," sets thresholds for total payroll.

From Barron's • Jan. 23, 2026

The Dodgers paid more than half a billion dollars last season between payroll and luxury tax penalties, inspiring increasingly loud calls among franchise owners and fans for new rules to rein them in.

From The Wall Street Journal • 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

There was a wintry quality in the night itself that made a comfortable chair and an open fire distinctly worth the payment of a luxury tax.

From On Secret Service Detective-Mystery Stories Based on Real Cases Solved By Government Agents by Taft, William Nelson