take-home pay

\ ˈtāk-ˌhōm- \

Definition of take-home pay

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

Examples of take-home pay in a Sentence

Recent Examples on the Web

Her take-home pay, $150 a week, covers expenses such as clothing, train fare, laundry and her cellphone bill. Anne Kadet, WSJ, "Here’s How New Yorkers Make It in the Big Apple on $15 an Hour," 16 Oct. 2018 The sweeping Republican tax cuts that took effect in January were likely a major contributing factor, permanently slashing the corporate tax rate from 35 percent to 21 percent and increasing many workers' take-home pay. Gregg Re, Fox News, "GDP report shows booming 4.1 percent growth, as Trump touts 'amazing' numbers," 27 July 2018 Of course, if shoppers were simply made employees with a straightforward salary, figuring out one's take-home pay would be considerably easier. Cyrus Farivar, Ars Technica, "Instacart changes how it pays shoppers, but many say they’re now making less," 18 Nov. 2018 For a lot of people, one big aspect of this transition is reevaluating your finances now that your pay schedule (and possibly your take-home pay) has changed. Amy Keller Laird, SELF, "Does Work/Life Balance Exist in the Gig Economy?," 8 Nov. 2018 Total take-home pay for the 48-hour week, after taxes: Around $600. Anne Kadet, WSJ, "Here’s How New Yorkers Make It in the Big Apple on $15 an Hour," 16 Oct. 2018 That’s an increase in take-home pay of $2,501, or 4.9%—nearly 70% higher than the 2.9% rate of inflation, assuming the inflation rate holds at around 2.9% for the rest of the year. Andy Puzder, WSJ, "Bernie Sanders’s Half-Truth on Wages," 5 Sep. 2018 In addition, the cost of my health insurance keeps rising, usually erasing and even generating a deficit in my take-home pay. Alvin Chang, Vox, "Teacher pay is falling. Their health insurance costs are rising.," 16 Mar. 2018 Some Americans are seeing bumps in their take-home pay in 2018, while others are on the receiving end of one-time bonuses from corporations that credit the tax bill for their generosity. Amber Phillips, Washington Post, "What is Marco Rubio thinking when he criticizes the GOP tax bill?," 1 May 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.

See More

First Known Use of take-home pay

1942, in the meaning defined above

Keep scrolling for more

Learn More about take-home pay

Share take-home pay

Statistics for take-home pay

Last Updated

29 Dec 2018

Look-up Popularity

Time Traveler for take-home pay

The first known use of take-home pay was in 1942

See more words from the same year

Keep scrolling for more

More Definitions for take-home pay

take-home pay


Financial Definition of take-home pay

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

take-home pay


English Language Learners Definition of take-home pay

: the amount of money that a person earns after taxes and other amounts have been subtracted

Comments on take-home pay

What made you want to look up take-home pay? Please tell us where you read or heard it (including the quote, if possible).


important, real, or meaningful

Get Word of the Day daily email!

Test Your Vocabulary

Homophone Quiz

  • three-bears-two-of-them-look-like-theyre-whispering-to-a-third-bear-who-looks-chuffed-to-be-the-center-of-attention
  • In order to judge how people felt, the senator's office hired a firm to take a ______.
Name That Thing

Test your visual vocabulary with our 10-question challenge!

Add Diction

Test Your Knowledge - and learn some interesting things along the way.


Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!