that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government.
Also called withholding.
Origin
1940-45
Related forms
unwithholding, adjective
British Dictionary definitions for withholding tax
withholding tax
noun
1.
tax deducted at source from income, esp from dividends, paid to nonresidents of a country, which may be reclaimed if a double-taxation agreement exists between the country in which the income is paid and the country of residence of the recipient
2.
(US) a portion of an employee's tax liability paid directly to the government by the employer
withholding tax in Culture
withholding tax definition
The tax withheld (or deducted) directly from one's paycheck.