# taxation

/tækˈseɪʃən/ (US) · /tæksˈeɪʃən/ (UK)

Source: https://englishreference.com/word/taxation
Updated: 2026-06-20

## Senses

### 1. the act of taxing

noun · CEFR B2

the act of a government taking a portion of money from people or businesses.

For teachers: the act or process of imposing a tax upon persons, entities, or transactions. Uncountable in this general sense.

- The government introduced new taxation on plastic packaging to reduce waste.
- The parliament debated whether the proposed taxation on capital gains would discourage long-term investment in the domestic tech sector.

### 2. a specific system

noun · CEFR B2 · Academic

a particular set of rules for how taxes are calculated and collected.

For teachers: a specific fiscal system or method by which a government generates revenue. Often used with qualifying adjectives.

- Progressive taxation means that people who earn more money pay a higher percentage in tax.
- Economists often argue that a system of direct taxation is more transparent than one relying heavily on indirect levies and consumption taxes.

### 3. tax revenue

noun · CEFR C1 · Formal

the total amount of money a government receives from taxes.

For teachers: the total revenue or yield accrued by a state through the collection of taxes.

- The city used the money from taxation to build a new library and repair the roads.
- The sudden shortfall in taxation forced the administration to reconsider its ambitious infrastructure projects for the coming fiscal year.

## Examples

- The government is planning to increase taxation on luxury goods.
- High levels of taxation can provide excellent public services but may also reduce the amount of money people have to spend.
- Economists often debate whether progressive taxation effectively redistributes wealth or if it inadvertently discourages private investment and long-term industrial growth.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.