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

From Barron's • Jan. 23, 2026

Including their expected luxury tax bill this winter, Dodgers owner Mark Walter—fresh off his purchase of the Los Angeles Lakers—and his partners will pay roughly a half-billion dollars.

From The Wall Street Journal • Nov. 2, 2025

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