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

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

From Barron's

The Dodgers' luxury tax payroll for 2026 is reportedly around $396 million -- nearly $90 million over the highest CBT threshold.

From Barron's

It’s a small luxury tax for getting to do it.

From Los Angeles Times

The owners could agree that teams should share more revenue, with luxury tax penalties not just in cash but also in restrictions that would hamper the ability to compete, something more significant than the loss of a couple of draft picks.

From Los Angeles Times

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