English Reference
noun · adjective

deductible

n. · adj.
US /dɪˈdəktəbəɫ/ UK /dɪdˈʌktəbəl/ de·ductible UK spelling deductibles

  1. 01 B2 Upper Intermediate American English

    n.the specific amount of money you must pay for a loss or medical bill before your insurance company starts to pay.

    n.the fixed amount of expenses that a policyholder must pay out of pocket before an insurer assumes liability for further costs.

    Simple

    I had to pay a five-hundred-dollar deductible before the insurance covered my car repairs.

    In context

    Choosing a higher deductible can significantly lower your monthly premium, though it increases your financial risk in the event of a major claim.

    Usage

    In British English, this is usually called an 'excess'.

  2. 02 B2 Upper Intermediate Technical Law

    adj.describes an amount of money, like a business cost, that you can subtract from your total income so you pay less tax.

    adj.allowable as a deduction from gross income when calculating taxable income or other financial totals.

    Simple

    The money you spend on office supplies is usually tax deductible for your business.

    In context

    The accountant confirmed that the charitable donations were fully deductible under the current tax code, reducing the firm's overall liability.

    Usage

    Often follows the word 'tax' as in 'tax-deductible'.

    allowablesubtractable
    non deductible

From deduct + -ible.

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

This entry
Level B2 · Upper Intermediate
Frequency Frequent
Updated