Meaning & use
post-tax dollars
Last updated
Meaning
phrasepluralfinance
Money that is left after tax has already been taken out, especially income used for spending or investing.
Grammar: Used as a plural noun phrase; it usually appears after a preposition such as 'in' or 'with': invest with post-tax dollars.
Patterns
- in post-tax dollars
- with post-tax dollars
- pay for something with post-tax dollars
She pays for her health insurance with post-tax dollars, so she cannot deduct the cost.
The account grows tax-free, but the money you put in is already post-tax dollars.
Compare the two plans: one is funded with pre-tax money and the other with post-tax dollars.
Common combinations
- in post-tax dollars
- The fee is small when you measure it in post-tax dollars.
- with post-tax dollars
- He bought the shares with post-tax dollars from his savings account.
- post-tax income
- Their post-tax income is about $4,000 a month.
- post-tax basis
- These contributions are made on a post-tax basis.
Synonyms and how they differ
- after-tax dollars
- This is the more common everyday wording; 'post-tax dollars' sounds more technical and financial.
- net income
- This means the total amount left after deductions, not the individual dollars you spend.
Opposites
Word family
- post-tax adjective
- Describing an amount or payment that is calculated after tax has been removed.
- pre-tax adjective
- Describing money or a benefit that is dealt with before tax is taken.
Commonly confused: post-tax dollars or pre-tax dollars?
post-tax dollars vs pre-tax dollars
Pre-tax dollars have not yet had tax taken out, while post-tax dollars are what remains after tax.
Practice
If you contribute to a retirement account with ______, you have already paid income tax on that money.
Choose one answer.
'Post-tax dollars' means the money has already been taxed. 'Pre-tax dollars' would mean tax has not yet been paid, and 'tax-free dollars' would mean no tax is ever due.
Make it your own
Write a sentence using “post-tax dollars”, then check it and compare it with the examples above.