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

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

Losing the $7,500 federal purchase tax credit at the end of September has hurt.

From Barron's • Feb. 23, 2026