# deductible

/dɪˈdəktəbəɫ/ (US) · /dɪdˈʌktəbəl/ (UK)

Source: https://englishreference.com/word/deductible
Updated: 2026-08-08

## Senses

### 1. insurance payment

noun · CEFR B2 · American English

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

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

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

adjective · CEFR B2 · Technical

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

For teachers: allowable as a deduction from gross income when calculating taxable income or other financial totals.

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

## Examples

- I chose a higher deductible to lower my monthly insurance payments.
- After the minor car accident, Sarah realized her deductible was higher than the actual cost of the repairs.
- Policyholders often face a trade-off between a low annual premium and a high deductible, which can lead to significant unexpected expenses in the event of a major medical emergency.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.