Pretax: meaning, definitions and examples
๐ฐ
pretax
[ priหหtรฆks ]
financial context
The term 'pretax' refers to an amount of money or income that has not yet been subjected to taxation. It is often used in financial contexts to denote income, earnings, or contributions made before taxes are deducted. For example, a pretax salary is the total earnings of an individual before any taxes are taken out. This concept is important for individuals and businesses when calculating net income or for tax planning purposes.
Synonyms
before tax, pre-tax, tax-exempt
Examples of usage
- I prefer to save my pretax income into a retirement account.
- The company's pretax profits were higher than expected.
- Employees can contribute to a pretax health plan, reducing their taxable income.
Translations
Translations of the word "pretax" in other languages:
๐ต๐น antes dos impostos
๐ฎ๐ณ เคเคฐเฅเค เคธเฅ เคชเคนเคฒเฅ
๐ฉ๐ช vor Steuern
๐ฎ๐ฉ sebelum pajak
๐บ๐ฆ ะดะพ ะพะฟะพะดะฐัะบัะฒะฐะฝะฝั
๐ต๐ฑ przed opodatkowaniem
๐ฏ๐ต ็จๅ
๐ซ๐ท avant impรดts
๐ช๐ธ antes de impuestos
๐น๐ท vergilerden รถnce
๐ฐ๐ท ์ธ๊ธ ์
๐ธ๐ฆ ูุจู ุงูุถุฑุงุฆุจ
๐จ๐ฟ pลed zdanฤnรญm
๐ธ๐ฐ pred zdanenรญm
๐จ๐ณ ็จๅ
๐ธ๐ฎ pred obdavฤenjem
๐ฎ๐ธ fyrir skatta
๐ฐ๐ฟ ัะฐะปัาัะฐะฝ ะฑาฑััะฝ
๐ฌ๐ช แแแแแกแแฎแแแแแแแแ แแแ แ
๐ฆ๐ฟ vergi olmadan ษvvษl
๐ฒ๐ฝ antes de impuestos
Etymology
The word 'pretax' is formed by the prefix 'pre-' which originates from Latin meaning 'before', and 'tax', which comes from the Latin 'taxare' meaning 'to assess'. The amalgamation of these terms created 'pretax', indicating a financial term that is associated with amounts before they are taxed. The concept has gained prominence in finance and accounting, especially in discussions of income, investments, and retirement savings, as understanding pretax advantages can significantly affect an individual's or company's fiscal strategy. As tax policies evolved, the use of pretax in financial literacy has become increasingly important, prompting discussions on pretax contributions and deductions.