income tax

noun

Pronunciation: ˈɪnkʌm tæks

Definition

A mandatory financial charge levied by a government on the earnings of individuals and businesses.

Examples

• The government uses revenue from income tax to fund public services like schools and infrastructure.

• Most workers have income tax automatically deducted from their monthly paychecks.

• Filing your annual income tax return can be a complex process if you have multiple sources of revenue.

Synonyms of income tax

Words with a similar meaning to income tax:

• levy
• taxation

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