Definition of take-home pay
: income remaining from salary or wages after deductions (as for income-tax withholding)
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Recent Examples of take-home pay from the Web
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Those two regions ranked second- and third-highest respectively for take-home pay in the health care practitioner and technical worker category.
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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.
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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.
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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.
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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.
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That means more jobs more take-home pay, lowest African-American unemployment in history.
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Changes to the way all U.S. businesses are taxed have already meant more take-home pay and better opportunities for workers.
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So far, the promise of higher take-home pay from President Donald Trump's tax cuts appears to have had little influence on spending for big-ticket items such as autos.
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
Financial Definition of TAKE-HOME PAY
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 Defined for English Language Learners
Definition of take-home pay for English Language Learners
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: the amount of money that a person earns after taxes and other amounts have been subtracted
Seen and Heard
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