Pre-tax health benefits mean that you can use money from your pay cheque before taxes are taken out to pay for health-related costs. This implies that the money you put into these benefits is taken out of your pay before taxes are calculated, which lowers your taxable income. Because of this, you pay less in federal income tax, state tax (in most situations), and Social Security taxes. https://livepositively.com/understanding-pre-tax-health-benefits-and-section-125-plans-in-health-insurance/