pretax

pretax — adjective

  • pretaxpositive
  • more pretaxcomparative
  • most pretaxsuperlative

1. used to describe an amount of money earned or received that has not yet had any

1.adjectiveB2
Definition

used to describe an amount of money earned or received that has not yet had any tax subtracted from it, especially on a payslip or financial document.

Example

Wei's pretax income was fifty thousand dollars, but he paid about twelve thousand in taxes.

collocation: pretax income / pretax profit

The company reported a pretax profit of two million dollars for the third quarter.

collocation: pretax profit / pretax earnings

Common collocations
  • pretax income
  • pretax profit
  • pretax earnings
  • pretax deductions
  • pretax contributions
  • pretax return
Synonyms
  • pre-tax

    same meaning; the hyphenated spelling is common in British English

  • gross

    broader term — gross income includes all deductions (tax, insurance, pension), while pretax focuses specifically on tax

Antonyms
  • after-tax

    describes income or profit after taxes have been subtracted

  • net

    broader opposite — net income is what remains after all deductions, not just tax

Common Mistakes

My pretax salary is $3,000 per month, so I take home $3,000.
My pretax salary is $3,000 per month, but after taxes I take home about $2,400.
pretax is the amount before tax is removed, not the amount you actually receive.

Word family

Synonym discussion

Sense: adjective/1

Pretax (or pre-tax with a hyphen) is the standard adjective for describing financial figures before tax is subtracted. Gross is a broader term that includes all deductions (tax, insurance, pension), not just tax; for example, gross salary is the total earned before ANY deduction, while pretax salary technically only excludes tax. Before-tax is a less common, more descriptive alternative used mainly in spoken or informal contexts. In practice, pretax and pre-tax are interchangeable, with the hyphenated form more common in British publications. Use pretax when you specifically want to contrast with after-tax or net — for example: 'The pretax profit was $2M, but after tax the company kept only $1.4M.'

pre-taxgrossbefore-tax

Common collocations

Etymology

LatinEnglish

Formed in modern English by combining the Latin-derived prefix pre- (meaning 'before') with the noun tax (from Latin taxare 'to assess, value'). The compound emerged in the early 20th century alongside modern income tax systems.

First known use

1917

1917, in the meaning defined above