These resources are brought to you by the Cooperative Extension System and your Local Institution

Welcome

eXtension is an interactive learning environment delivering the best, most researched knowledge from the smartest land-grant university minds across America.

Find a U.S. Institution

Personal Finance Home

Have a question? Try asking one of our Experts

I am considering pre-tax health insurance from my employer as opposed to private insurance. What will pre-tax insurance actually cost me?

Last Updated: May 26, 2009

View as web page

With a pre-tax health insurance plan, your tax savings is the amount of the insurance premium multiplied by your federal marginal tax bracket. Subtract the tax savings from the premium cost to determine your true out-of-pocket expense. For example, $5,000 minus ($5,000 x 0.25%, or $1,250) equals $3,750. For information about federal marginal tax brackets, see http://njaes.rutgers.edu/money/taxinfo/.

We would like your feedback on this Personal Finance Frequently Asked Question.

Browse related Faqs by tag: personal finance, insurance, incometaxes

Have a specific question? Try asking one of our Experts

Unlike most other resources on the web, we have experts from Universities around the country ready to answer your questions.

These resources are brought to you by the Cooperative Extension System and your Local Institution. eXtension provides objective and research-based information and learning opportunities that help people improve their lives. eXtension is an educational partnership of 74 universities in the United States.

Welcome

Find an Extension Institution

I am considering pre-tax health insurance from my employer as opposed to private insurance. What will pre-tax insurance actually cost me?

Have a specific question? Try asking one of our Experts

Resource Area Feeds

In This Resource Area

Partners

Research

Debtor Education