Tax Allowance
/ˈtæks əˌlaʊəns/
Definitions
- (n.) An amount of income exempted from taxation, reducing the taxable income of an individual or entity.
The taxpayer claimed a personal tax allowance to lower their taxable income.
Forms
- tax allowance
- tax allowances
Related terms
See also
Commentary
Tax allowances are critical in tax law for determining taxable income and differ from tax credits, which apply directly to tax owed.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.