Meaning & use
the tax threshold
Last updated
Meanings
nounsingular
The level of income at which a person or company must start paying tax.
Grammar: Often used with the definite article: the tax threshold. It is a countable noun, so you can say a tax threshold when talking about one of several possible levels.
Patterns
- the tax threshold for something
- below/above the tax threshold
- raise/lower the tax threshold
Many low-paid workers earn below the tax threshold and pay no income tax.
The government announced that the tax threshold would rise next year.
If your earnings are just over the tax threshold, you only pay tax on the amount above it.
nounsingulartechnicalfinance
The point at which a tax becomes due on a particular good, service, or activity.
Grammar: Used with the definite article or a possessive: the tax threshold on cigarettes, its tax threshold.
Patterns
- the tax threshold on something
- cross the tax threshold
The tax threshold on luxury cars was lowered in the budget.
Once imports cross the tax threshold, customs duty applies.
Word forms
| plural | tax thresholds |
|---|
Common combinations
- below the tax threshold
- Her part-time salary is below the tax threshold, so she doesn't file a return.
- raise the tax threshold
- The party promised to raise the tax threshold to help low earners.
- the tax threshold for
- What is the tax threshold for people who are self-employed?
- cross the tax threshold
- He crossed the tax threshold after his promotion and had to start paying income tax.
Synonyms and how they differ
- personal allowance
- In the UK, this is the amount you can earn before paying income tax; it is the exact figure, while the tax threshold is the point at which tax begins.
- exemption threshold
- A more general term for any level below which a charge does not apply; tax threshold is specific to taxes.
Word family
Commonly confused: the tax threshold or tax rate? the tax threshold or tax bracket?
the tax threshold vs tax rate
The tax rate is the percentage charged on income or goods, while the tax threshold is the income level at which tax starts to be paid.
the tax threshold vs tax bracket
A tax bracket is a range of income taxed at a particular rate; the tax threshold is the starting point of taxation, not a range.
Practice
Choose the correct sentence:
Choose one answer.
Below the tax threshold means earning less than the level at which tax starts, so no income tax is due. The other options wrongly suggest that tax is paid or that a refund is automatic.
Make it your own
Write a sentence using “the tax threshold”, then check it and compare it with the examples above.