Personal Disposable Income


  • Personal income that is left after subtracting personal income tax payments. Also called "take-home pay."

gross wage minus deductions, disposable income, take home pay, net earnings

Related Terms and Acronyms

  • Active Income Definition,
    • Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
  • Before-tax Income Definition,
    • Earnings before income taxes are paid.
  • Earned Income Definition,
    • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • Gross Income Definition,
    • Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
  • Household Income (HHI) Acronym, Important,
    • The total income of all members of a household.
  • Income Definition,
    • The money earned in a specific time period.
  • Income Tax Definition,
    • The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
  • Income-splitting Definition,
    • A financial strategy used for tax purposes to reduce the overall tax burden on a family. Income is shifted from one family member to another who is in a lower tax bracket, so the income is taxed at the lower rate to save the family money.
  • Net Cash Flow (NCF) Acronym,
    • Incremental after-tax income plus depreciation expense resulting from investment.
  • Ordinary Income Definition,
    • Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
  • Personal Consumption Spending Definition,
    • What households collectively spend on goods and services.
  • Personal Savings Definition,
    • The difference between personal disposable income and personal consumption spending.
    • Put own money away.
  • Taxable Income Definition,
    • Income that is subject to taxation after accounting for adjustments, exemptions, and deductions.
  • Unearned Income Definition,
    • Income such as interest, dividends, capital gains or rents, as opposed to earned income, such as wages, tips and salaries.
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