withholding tax

American  

noun

withholding taxes plural

1. that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government.

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withholding tax British  

noun

1. tax deducted at source from income, esp from dividends, paid to nonresidents of a country, which may be reclaimed if a double-taxation agreement exists between the country in which the income is paid and the country of residence of the recipient

2. a portion of an employee's tax liability paid directly to the government by the employer

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withholding tax Cultural  

1. The tax withheld (or deducted) directly from one's paycheck.

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Other Word Forms

Derived Forms

• unwithholding
  adjective

Inflected Forms

Nouns

• withholding taxes
  plural

Etymology

Origin of withholding tax

First recorded in 1940–45

Example Sentences

See Examples For:

withholding tax

This tactic allowed both parties to claim rebates on withholding tax - a levy which had only been paid once, when the dividend was issued.

From BBC ● Nov. 2, 2025

One caveat for U.S. investors: CNQ dividends face a 15% Canadian withholding tax outside retirement accounts.

From MarketWatch ● Oct. 9, 2025

In several states, including North Carolina, Ohio, and New York, public university systems refer patients to other state agencies for legal action or withholding tax refunds.

From Salon ● Dec. 22, 2022

Its impact is diminished because awards are subject to a federal withholding tax, meaning that 37 percent of the dollars appropriated to this program go right back to the U.S.

From Washington Post ● Dec. 20, 2022

The firm has been in a long-running tussle with the Dutch authorities over the country’s 15% dividend withholding tax on some of its shares, making them less attractive for international investors.

From Reuters ● Jan. 21, 2022