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

The latest federal budget extended a tax holiday for GIFT-resident entities from 10 to 20 years.

From Barron's • Apr. 9, 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

Although many states have considered it, just four — Maryland, Georgia, Connecticut, and New York — have implemented a state gas tax holiday.

From Washington Times • Jun. 22, 2022

Still, recent studies indicate that a gas tax holiday would result in lower prices.

From Seattle Times • Jun. 22, 2022