A tax break
is a tax saving
. This includes:
- Tax exemption, an exemption from all or certain taxes of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone.
- Tax deduction, an expense incurred by a taxpayer that is subtracted from gross income and results in a lower overall taxable income,
- Tax credit, more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed.