posttax

Posttax describes anything measured after taxes have been paid. It is the complement to pretax, which refers to amounts before tax obligations are subtracted. The term is used across personal finance, corporate finance, and public policy to distinguish gross figures from figures that reflect tax liabilities.

In personal finance, posttax income or take-home pay is the amount an individual or household has available after income taxes, payroll taxes, and other mandatory levies. This figure depends on jurisdiction, tax brackets, credits, deductions, and withholding. Effective tax rate is a related concept, representing the share of income paid in taxes rather than the nominal rate.

In corporate finance, posttax metrics describe cash flows or profits after tax obligations. Posttax profit equals pretax profit minus income taxes; posttax cash flow adjusts for taxes and noncash charges to reflect the amount available to shareholders or for reinvestment. Tax considerations can significantly alter investment decisions, financing choices, and the valuation of projects.

Tax policy analysis frequently uses posttax measures to assess welfare and distributional outcomes, since taxes alter consumption, saving, and investment. Comparisons between posttax and pretax figures help illustrate the impact of tax policy on economic behavior.

Notes and caveats: posttax values depend on the applicable tax regime, credits, deductions, and timing of tax events. They can differ markedly across countries, states, or individual circumstances, so context is essential when interpreting posttax figures. See also pretax, take-home pay, tax-efficient, and tax incidence.