A tax break or refund of a certain amount or percentage. This arises from an overpayment of taxes, due to overestimation by the tax authorities, or because there’s a reduction in, or foregoing of, tax penalties for a certain reason.

Tax break (a.k.a, tax preferences, tax concession, and tax relief) implies reduction to the tax liability of taxpayers. Tax breaks are applied by a government usually as a stimulation to the economy and a booster to the solvency standing of the citizens.