take-home pay

noun
\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

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 Complicating matters, lawmakers are negotiating sweeping changes to the state and school pension fund, which will likely cut teacher retirement benefits and could decrease their take-home pay. Washington Post, "Q&A: Why Colorado, Arizona teachers are walking off the job," 26 Apr. 2018 Those two regions ranked second- and third-highest respectively for take-home pay in the health care practitioner and technical worker category. Cathie Anderson, sacbee, "Which city’s health workers boast highest disposable income? Hint: It’s a capital," 28 June 2018 In 39 states, teachers’ salaries have declined since 2010; many are also being asked to pay more for benefits, reducing their take-home pay even as private-sector wages rise. Molly Ball, Time, "Fed-Up Women Are Changing American Politics," 12 Apr. 2018 The employer would be reimbursed through a tax credit by the state, while employees would see less take-home pay — but get reimbursed on their income taxes. Joseph Spector And Jon Campbell, USA TODAY, "New York is first of high-tax states ready to do end-around Trump code," 28 Mar. 2018 Differences in take-home pay take on extra significance in light of the Tax Cuts and Jobs Act, which President Donald Trump signed into law in December 2017. Michael Mccann And Robert Raiola, SI.com, "Where Will John Tavares Go and How Much Money Will He Take Home?," 27 June 2018 Workers would see a deduction from their take-home pay starting in the summer of 2019, with the leave benefits available to them starting in 2021. Joshua Miller And Matt Stout, BostonGlobe.com, "After no new taxes pledge, Baker faces grand bargain bill — with an $800 million new tax," 26 June 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.

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First Known Use of take-home pay

1942, in the meaning defined above

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Last Updated

20 Oct 2018

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Time Traveler for take-home pay

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

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More Definitions for take-home pay

take-home pay

noun

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

noun

English Language Learners Definition of take-home pay

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

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