English Reference

Word

deduct

US/dɪˈdəkt/

UK/dɪdˈʌkt/

Finance

Definition

v. to take away an amount or a part from a total. You often see this when money is taken out of a paycheck for taxes.

v. to subtract an amount or portion from a total sum. Often used in financial or mathematical contexts to describe the removal of specific costs or taxes.

Examples

“The store will deduct ten dollars from the original price.”

“Employers are required by law to deduct income tax and social security contributions directly from their employees' monthly wages.”

“When calculating your taxable income, you may be eligible to deduct certain business expenses, effectively reducing the total amount on which you owe tax to the government.”

Examples

simple

“The store will deduct ten dollars from the original price.”

contextual

“Employers are required by law to deduct income tax and social security contributions directly from their employees' monthly wages.”

complex

“When calculating your taxable income, you may be eligible to deduct certain business expenses, effectively reducing the total amount on which you owe tax to the government.”

Usage

The verb is transitive and requires a direct object representing the amount being removed.

Pitfall

They deducted from my salary the tax.

They deducted the tax from my salary.

The direct object (the amount) should immediately follow the verb before the prepositional phrase.

Real-World Examples

“True to form it will deduct 10 points from Everton and Forest.”
The Guardian 1 Oct 2026
“Men and women worked in his factory for two weeks and received only a few dollars pay after deducting rent.”
Smithsonian Magazine 1 Nov 2017

Etymology

Borrowed from Latin deductus, perfect passive participle of verb deducere (“lead from”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Word family

VERB

deduct(B2)

Domain

Finance

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.B2 FirstIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.5.5–6.5TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 4.0–4.572–94TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.785–944
Frequency
Occasional
Level
B2 · Upper Intermediate
Updated

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English Reference