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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.

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 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

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

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

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