income taxˈincome tax noun [countableC, uncountableU]TAX in Britain, a tax on money people earn, paid to the national government. In the US, a tax on the money people earn or on the profits companies make, paid to the national, state, or local governmentFlorida and Texas have no income tax, which is one reason that many people with substantial assets live there.
He failed to report and pay income tax on his portion of this income.
→ see also separate entry for tax1 → corporate income tax → deferred income tax → federal income tax → individual income tax → local income tax → negative income tax → personal income tax → state income tax