luxury tax

American

noun

a tax on certain goods or services not considered essential and usually relatively high in price.

Etymology

Origin of luxury tax

First recorded in 1900–05

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The Dodgers won their second consecutive World Series last year with a star-studded roster that cost more than a half-billion dollars between payroll and luxury tax payments for those high salaries.

From The Wall Street Journal

The ban is expected to cost George about $11.7 million of his season salary and save the 76ers about $5 million in luxury tax payments under the league's salary cap system.

From Barron's

The CBT, often referred to as a "luxury tax," sets thresholds for total payroll.

From Barron's

The Dodgers' luxury tax payroll for 2026 is reportedly around $396 million -- nearly $90 million over the highest CBT threshold.

From Barron's

It’s a small luxury tax for getting to do it.

From Los Angeles Times

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023