take-home pay

noun \ ˈtāk-ˌhōm- \

|Updated on: 16 Jun 2018

Definition of take-home pay

: income remaining from salary or wages after deductions (as for income-tax withholding)

See take-home pay defined for English-language learners

Recent Examples of take-home pay from the Web

This new law is making a big difference in the lives and take-home pay of Americans.

— Naperville Sun, "Letters to the Editor," 1 June 2018
In a Medium post, Lyft COO Jon McNeill says that hub expansion is an effort to use the company’s size and scale to increase take-home pay.

— patrick sisson, Curbed, "Lyft is spending $100M on new hubs for drivers," 23 May 2018
Teachers from around the state were on hand to demand better salaries as lawmakers under the dome were set to debate a pension reform measure to cut retirement benefits as well as take-home pay.

— Washington Post, "Colorado teachers rally at Capitol for school funding," 16 Apr. 2018
Corrections & Amplifications Changes to withholding tables used by employers sometimes raise take-home pay too much.

— laura saunders, WSJ, "Last-Minute Tips as Tax Day Approaches," 30 Mar. 2018
Ninety percent of workers are getting an increase in their take-home pay, Treasury Secretary Steven Mnuchin estimated, after employers started withholding less money starting in February.

— steve matthews, Bloomberg.com, "Trump's Economy Is Still Waiting for the Tax-Cut Boost," 16 Mar. 2018
In 2018, the new withholding tables should boost this family's take-home pay by $8,426, according to estimates by the Tax Institute at H&R Block — a noticeable $702 more per month.

— bloomberg, latimes.com, "How old are your kids? The answer could determine your tax bill," 9 Mar. 2018
Felker said halted production there has 4,000 union workers drawing 80 percent of their take-home pay.

— mark davis, kansascity, "Michigan fire sent Ford on hunt for F-150 truck part so it can restart Claycomo line | The Kansas City Star," 11 May 2018
Gains in labor productivity can allow employers to boost workers’ take-home pay, but the recent trend has been historically weak.

— ben leubsdorf, WSJ, "Powerful Forces Seen Restraining U.S. Pay Growth," 12 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'take-home pay.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of take-home pay

1942

in the meaning defined above

See Words from the same year

NEW! Time Traveler

Financial Definition of TAKE-HOME PAY

take-home pay

noun

What It Is

Take home pay is the portion of one's salary left after all payroll taxes have been deducted.

How It Works

John Doe has a salary of $100,000. He is paid 26 times per year (every other Friday). The federal and state payroll taxes (Social Security, Medicare, unemployment, and federal withholding) amount to, say, 10% of his salary.

John Doe's salary divided by 26 paychecks equals $3,846.15 per paycheck. However, because John Doe has payroll taxes withheld, his take home pay is actually 90% of that, or $3,461.53.

Why It Matters

Understanding the difference between salary and take home pay is important for anyone trying to create and live on a household budget. Taxes are not the only thing that can affect take home pay. If a person is having alimony, child support, retirement plan contributions, or other money withheld from his or her paycheck, these things will also affect the person's take home pay.

Source: Investing Answers