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

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 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

On went the unpopular luxury tax and sales tax.

From The Masques of Ottawa by Bridle, Augustus