purchase tax

American  

noun

British.

1. a sales tax on nonessential and luxury goods.

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purchase tax British  

noun

1. a tax levied on nonessential consumer goods and added to selling prices by retailers

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Etymology

Origin of purchase tax

First recorded in 1935–40

Example Sentences

Investors continue to be worried about slowing EV sales after the federal EV purchase tax credit expired in September.

From Barron's • Apr. 21, 2026

Many EVs are leased, a legacy of how the federal government’s former $7,500 purchase tax credit was administered.

From Barron's • Apr. 7, 2026

Sales declined from a record 497,099 vehicles delivered in the third quarter of 2025 as buyers rushed to beat the expiration of the $7,500 federal EV purchase tax credit.

From Barron's • Apr. 1, 2026

A scaled back trade-in program and a rise in the EV purchase tax from 0% to 5% may prompt domestic auto sales growth to slow, Nomura says.

From The Wall Street Journal • Mar. 12, 2026

The $7,500 federal EV purchase tax credit expired in September, making all EVs less affordable.

From Barron's • Mar. 3, 2026