Definition

Referring to amounts or values that are calculated before any taxes are deducted.

Example

Employees can contribute to their retirement accounts with pretax dollars, reducing their taxable income.

Conversation

Did you check your pretax income for this year?

Not yet, but I know it’s important for my tax planning.

Yeah, understanding your pretax earnings can really help with budgeting.

Absolutely! I need to get on that before the tax deadline.

Synonyms & Antonyms

Root Explanation

Pretax → It is formed from "pre-" (meaning before) and "tax" (from Latin "taxare", meaning to assess or estimate). The word "pretax" refers to the amount of income or profit before any taxes are deducted.

Memory Tip

Think of 'before' ('pre-') the 'assessment' ('tax') of income — that's why pretax refers to earnings before taxes are taken out.

Visually Confused Words