What context can I use each word in?
Learn when and how to use these words with these examples!
taxable
Example
The interest earned on your savings account is taxable. [taxable: adjective]
Example
The taxable income for this year is $50,000. [taxable: noun]
Example
The company's profits are taxable under federal law. [taxable: adjective]
taxed
Example
I received my paycheck, and it was already taxed. [taxed: verb]
Example
The property was sold, and the capital gains were taxed at a rate of 20%. [taxed: verb]
Example
The company's profits were taxed at a rate of 35%. [taxed: verb]
Good things to know
Which word is more common?
Taxed is more commonly used than taxable in everyday language. Taxed is a past tense verb that is used to describe the act of imposing a tax on something that has already occurred. On the other hand, taxable is less common and is typically used as an adjective or noun to describe something that is subject to taxation.
What’s the difference in the tone of formality between taxable and taxed?
Both taxable and taxed are formal words that are commonly used in legal and financial contexts. However, taxed may be slightly more informal since it is a past tense verb that is used in everyday language.
