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.

Keep scrolling for more

Learn More about take-home pay

Dictionary Entries near take-home pay

Statistics for take-home pay

Last Updated

20 Oct 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

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