pretax

adjective

pre·​tax ˌprē-ˈtaks How to pronounce pretax (audio)
variants or pre-tax
: existing before provision for taxes : before taxes are deducted
pretax earnings/profits
The most common self-directed plans, 401(k) plans, leave it up to employees to voluntarily contribute part of their pretax salary.Ellen E. Schultz

Examples of pretax in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
These contributions were made with pretax dollars, meaning the money went into your retirement account before getting taxed. Mary Clements Evans, Forbes.com, 9 Apr. 2025 Next, a staple in British retail brands, reported a pretax profit of £1,011 billion ($1.3 billion) in 2024, up 10.1% from the previous year and surpassing the billion pound milestone. Jenni Reid,chloe Taylor,sawdah Bhaimiya,holly Ellyatt, CNBC, 27 Mar. 2025 Retirees’ income usually comes from one or more of the following: taxable brokerage accounts, pretax investments like 401(K)s, nontaxable accounts like a Roth IRA, or Social Security benefits. Medora Lee, USA TODAY, 25 Mar. 2025 Given that California has 1.9 million households which pay half or more of their pretax income as rent, there is a huge group of residents at constant risk of losing shelter, Ohanian notes. U T Editorial Board, San Diego Union-Tribune, 14 Mar. 2025 See All Example Sentences for pretax

Word History

First Known Use

1917, in the meaning defined above

Time Traveler
The first known use of pretax was in 1917

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Cite this Entry

“Pretax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/pretax. Accessed 13 Apr. 2025.

Legal Definition

pretax

adjective
pre·​tax
ˌprē-ˈtaks
: existing or occurring before the assessment or deduction of taxes
pretax income
pretax contributions
Last Updated: - Updated example sentences
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