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

See Examples For:

luxury tax

For a team that will spend almost half a billion dollars on its player payroll and luxury tax this season, its most important trade deadline pickup could be a catcher making maybe $1 million.

From Los Angeles Times ● Jul. 18, 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

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

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 William Nelson Taft