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.
The strategy transfers your pretax or nondeductible IRA funds to a Roth IRA to kickstart future tax-free growth. Kate Dore, Cfp®, Ea, CNBC, 20 Oct. 2025 Nearly 90% of the lowest-income households in the state spend over one-third of their pretax income on rent or mortgage payments. Stefan Chavez-Norgaard, The Conversation, 16 Oct. 2025 OxyChem represents almost 20% of Oxy’s total pretax income, bringing in more than $1 billion annually. Jordan Blum, Fortune, 2 Oct. 2025 Based on the official measure, which is a simple calculation based on pretax cash income compared to a national threshold, the percentage of seniors in poverty rose to 9.9% last year from 9.7% in 2023, data showed. Medora Lee, USA Today, 10 Sep. 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 26 Oct. 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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