Is Disability Insurance Pre Taxed? 
It depends on how the policy is structured . If an individual obtains disability insurance through their employer and the premiums are payed either by the employer or through a salary redirection agreement then they would be payed with pre-tax dollars and therefore any pay-out would be taxed . If one pays with funds that are included in their gross income and have been subjected to FICA and FUTA taxes then the pay-out from the DI would not be taxed . 