Tax costs may refer to increased tax liabilities resulting from a corporate transaction, but more often describes a motion by a losing party in litigation to challenge specific costs claimed by the prevailing party. A “motion to tax costs” or “motion to strike costs” allows the losing party to dispute responsibility for certain litigation expenses. Because such costs can be substantial, the losing party may contest them based on applicable laws or contractual provisions governing cost recovery.
See e.g. Florida procedures on motion to tax costs
[Last reviewed in August of 2025 by the Wex Definitions Team]