Related Words

Tax Basis: The assessed value of the taxable property, assets, and income within a specific geographic area.

Tax Haven: A merger or consolidation in which (1) the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (2) each seller w . . . View Full Definition

Tax Clawback Agreement: The percentage of tax obligation for a particular taxable income.

Tax Codes: Under the PAYE system of taxing income, tax codes are allocated annually to employees. These codes enable the employer to deduct tax at the correct rate from salaries or wages on a monthly ( . . . View Full Definition

Tax Credit: A tax credit is an amount you can subtract from the tax you would otherwise owe. Unlike a deduction or exemption, a credit is a dollar-for-dollar reduction of your tax bill. For example, if . . . View Full Definition

Tax Deduction: A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing. Compare tax deduction.

Tax Credits: Tax you receive back in certain circumstances, e.g. pension credit, child tax credit and working tax credit.

Tax Bracket: A tax bracket is a range of income that is taxed at a specific rate. In the United States there are six brackets, taxed at 10%, 15%, 25%, 28%, 33%, and 35% of the amount that falls into each . . . View Full Definition

Tax Bill: A property owners tax bill is computed by applying the tax rate to the assessed valuation of the property.

Tax Audit: Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.