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

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

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

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