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
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The figures represent pretax earnings for the calendar year 2024, minus fees for representation – 10% to agents, 10% to managers and 5% to lawyers, per industry standard, although some actors do not have all three. Matt Craig, Forbes, 28 Feb. 2025 Auto insurer Geico had the most positive effect on Berkshire’s insurance results with pretax underwriting profits more than doubling to $7.8 billion last year. Yun Li, CNBC, 24 Feb. 2025 Despite the pretax profit for the fourth quarter, after-tax net income came in as a loss due to a special charge. Jamie L. Lareau, USA TODAY, 31 Jan. 2025 The company also completed the sale of its terminal in Birmingham, Alabama, for $47.5 million, recording a pretax gain of $30.7 million. Quartz Intelligence Newsroom, Quartz, 7 Feb. 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 12 Mar. 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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