purchase tax

American  

noun

British.

1. a sales tax on nonessential and luxury goods.

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purchase tax British  

noun

1. a tax levied on nonessential consumer goods and added to selling prices by retailers

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Etymology

Origin of purchase tax

First recorded in 1935–40

Example Sentences

That would be a 9% year-over-year rise—impressive considering U.S. car buyers lost the $7,500 federal EV purchase tax credit in September and Chinese EV sales have started the year off slowly.

From Barron's • Mar. 27, 2026

Americans lost the $7,500 EV purchase tax credit in September.

From Barron's • Mar. 26, 2026

The $7,500 federal purchase tax credit expired at the end of September, causing U.S.

From Barron's • Mar. 16, 2026

A scaled back trade-in program and a rise in the EV purchase tax from 0% to 5% may prompt domestic auto sales growth to slow, Nomura says.

From The Wall Street Journal • Mar. 12, 2026

EV sales in the fourth quarter dropped 36% year over year to some 234,000 vehicles following the loss of the federal $7,500 EV purchase tax credit in September.

From Barron's • Mar. 6, 2026