Definition

Describes a situation where someone or something is paying less tax than they should be, often resulting in a lower financial contribution to public services.

Example

Many wealthy individuals are considered undertaxed due to loopholes in the tax system.

Conversation

Have you heard that some people think we're undertaxed?

Yeah, I read an article about it the other day.

It's interesting because it makes you wonder where all the money goes.

Exactly! If we're undertaxed, we should see better public services.

Synonyms & Antonyms

Root Explanation

Undertaxed → It is formed from "under-" (meaning below or insufficient) and "tax" (from Latin "taxare", meaning to assess or estimate). The word "undertaxed" means being assessed or taxed at a level that is below what is required or expected.

Memory Tip

Think of being taxed 'below' ('under-') what is necessary — that's why undertaxed means not paying enough tax.

Visually Confused Words