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Pretax Yield
(redirected from Pre-Tax Yields)

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Pretax Yield
A return rate on an investment before accounting for either income taxes or capital gains taxes. The pretax yield is not as useful for determining yield as the after tax yield, particularly given the fact that some investments are tax-exempt.

pretax yield
The rate of return on an investment before taxes have been considered. As with other measures of yield, pretax yield is usually stated on an annual basis.


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The yield advantage under the same pre-tax yields has dropped to 58 basis points under the revised tax law.
Furthermore, State Farm Indemnity has produced an above average five-year net investment yield relative to industry norms, despite its significant holdings in tax-exempt municipal bonds, which generally produce lower pre-tax yields than taxable bonds.
The use of net of tax investment yields allows APCapital to monitor and measure investment performance on a more comparative basis by compensating for the decline in pre-tax yields on tax-exempt securities, with the benefit of the additional federal income tax savings.
 
 
 
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