What does pretax mean?
Pretax refers to income or taxes before they have been deducted or withheld. It is often used in financial and business contexts to refer to income or taxes before they have been deducted or withheld. In everyday conversation, pretax can refer to income or expenses before taxes are taken out. The term is commonly used in the United States and the United Kingdom. Pretax income is the amount of income earned before taxes are deducted, while post-tax income is the amount of income earned after taxes have been deducted. Pretax can also be used to refer to expenses before taxes are taken out. For example, a company's pretax expenses may be higher than its post-tax expenses. Overall, pretax is an important concept in finance and accounting, and it is widely used in both personal and business contexts.
adjectiveReferring to income or taxes before they have been deducted or withheld.
- Referring to income or taxes before they have been deducted or withheld.
"The pretax income of the company was $100 million, but after taxes, it was $80 million."
"The pretax income of the company was $100 million, but after taxes, it was $80 million."
"The employee's pretax salary was $50,000, but after taxes, it was $40,000."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of pretax
The word 'pretax' is derived from the phrase 'before tax,' which is a common expression used in finance and accounting. The term 'pretax' is thought to have originated in the mid-20th century, when taxes became a significant factor in business and financial planning. Over time, the term 'pretax' has become widely used in both personal and business contexts to refer to income or expenses before taxes are taken out.
Usage notes
Pretax is often used in financial and business contexts to refer to income or taxes before they have been deducted or withheld. It can also be used in everyday conversation to refer to income or expenses before taxes are taken out.