disposable income

noun

: income that is left after paying taxes and for things that are essential, such as food and housing
I don't have enough disposable income to buy such luxuries.

Examples of disposable income in a Sentence

Recent Examples on the Web
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Employers can withhold up to 15% of a borrower’s disposable income, according to federal rules. Tiffani Jackson, Sacbee.com, 8 Jan. 2026 Giving has pretty much remained flat as a percentage of personal disposable income. Ray Madoff, The Conversation, 6 Jan. 2026 As for the places young people should avoid, JB reported that Las Vegas—with a high crime rate and low disposable income—is the worst city for Gen Z. Lydia Mansel, Travel + Leisure, 29 Dec. 2025 Baby boomers, who often have more disposable income, are stepping in to fund travel for children and grandchildren. Taylor Haught, Fort Worth Star-Telegram, 11 Dec. 2025 See All Example Sentences for disposable income

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Cite this Entry

“Disposable income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/disposable%20income. Accessed 11 Jan. 2026.

Legal Definition

disposable income

noun
dis·​pos·​able income
: income available for disposal: as
a
: the income remaining to an individual after deduction of taxes
b
: the income of a debtor in bankruptcy that is not necessary to support the debtor or the debtor's dependents
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