Gross vs Net Income
Gross income is what you earn before deductions; net income is what you actually take home after taxes and withholdings.
What does gross vs net income mean?
Gross is the headline figure; net (take-home) is what lands in your account after taxes, FICA and benefit deductions. Budgets should be built on net income — the money you can actually spend.
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Related terms
Gross vs Net Income — frequently asked
What is the difference between gross and net income?
Gross income is your total earnings before any deductions; net income is what remains after taxes, insurance, and retirement contributions — your actual take-home pay. Lenders look at gross; your budget runs on net.
Is gross income before or after taxes?
Before. Gross income is the headline figure — salary or total revenue — with nothing subtracted yet. Taxes and other withholdings come out afterward to arrive at net income.