The phrase "tax hit" means the amount of money you have to pay in taxes. It refers to the portion of your income or assets that the government takes as tax payment. Full definition
The immediate tax hit on the withdrawal means you've got less — and potentially much less — than 100 cents on the dollar to pay down debt. (moneysense.ca)
For most people, that will result in a bigger tax hit. (cnbc.com)
This could result in tax hits of a few thousand dollars or considerably more. (rismedia.com)