tax holiday

American  

[taks hol-i-dey] / ˈtæks ˌhɒl ɪˌdeɪ /

noun

1. a period of time during which the government reduces or suspends the collection of a tax, as payroll, property, or sales tax.

   The state legislature declared a hurricane preparedness tax holiday for items like flashlights and battery-powered radios.

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tax holiday British  

noun

1. a period during which tax concessions are made for some reason; examples include an export incentive or an incentive to start a new business given by some governments, in which a company is excused all or part of its tax liability

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Etymology

Origin of tax holiday

First recorded in 1945–50

Example Sentences

See Examples For:

tax holiday

Cinquegrana points to three: waiving summer gasoline volatility rules, expanding E15 access, and pursuing a gasoline tax holiday.

From Barron's ● Mar. 3, 2026

India is also proposing a tax holiday up to 2047 for foreign cloud companies making data-centre investments in the country and providing cloud services to customers globally.

From BBC ● Feb. 1, 2026

OTTAWA—Inflation in Canada quickened in the final month of last year despite a drop in prices at the pump, largely due to comparisons with a year earlier when consumers benefited from a two-month tax holiday.

From The Wall Street Journal ● Jan. 19, 2026

Other initiatives include a six-month freeze on an increased motor fuel tax, a year-long suspension of the sales tax on groceries, and a back-to-school sales tax holiday on classroom supplies during August.

From Seattle Times ● Sep. 12, 2022

“I fully understand that a gas tax holiday alone is not going to fix the problem,” Mr. Biden said.

From Washington Times ● Jun. 22, 2022