income tax

Definition

Annual tax levied by the Federal government, most states, and some local governments, on an individual's or corporation's net profit.

Use income tax in a sentence

I had to pay a lot of income tax and that made me angry because I didn't like paying taxes at all.

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The income tax rates in advanced economies are usually higher than developing economies due to the fact that people make more money.

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The origin of the income tax on individuals is generally cited as the passage of the 16th Amendment, passed by Congress on July 2, 1909, and ratified February 3, 1913; however, its history actually goes back even further.

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