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

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

Investors have been focused on EV affordability after the $7,500 federal EV purchase tax credit expired in September.

From Barron's • Mar. 10, 2026

EV sales in the fourth quarter dropped 36% year over year to some 234,000 vehicles following the loss of the federal $7,500 EV purchase tax credit in September.

From Barron's • Mar. 6, 2026