tax holiday

American  

[taks hol-i-dey] / ˈtæks ˌhɒl ɪˌdeɪ /

noun

1. a period of time during which the government reduces or suspends the collection of a tax, as payroll, property, or sales tax.

   The state legislature declared a hurricane preparedness tax holiday for items like flashlights and battery-powered radios.

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tax holiday British  

noun

1. a period during which tax concessions are made for some reason; examples include an export incentive or an incentive to start a new business given by some governments, in which a company is excused all or part of its tax liability

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Etymology

Origin of tax holiday

First recorded in 1945–50

Example Sentences

Cinquegrana points to three: waiving summer gasoline volatility rules, expanding E15 access, and pursuing a gasoline tax holiday.

From Barron's • Mar. 3, 2026

Items affected by the year-earlier tax holiday saw a rise in comparable prices, particularly for restaurant meals and, to a lesser degree, for alcoholic drinks, toys and children’s clothing.

From The Wall Street Journal • Feb. 17, 2026

India is also proposing a tax holiday up to 2047 for foreign cloud companies making data-centre investments in the country and providing cloud services to customers globally.

From BBC • Feb. 1, 2026

It would also increase the standard deduction, reinstate a popular sales tax holiday and allocate more revenue to public education and college financial aid, the statement said.

From Washington Times • Aug. 25, 2023

However, the price reductions were not sustained during the entire tax holiday, and prices rose once the holiday was lifted, the report said.

From Seattle Times • Jun. 22, 2022