Finance glossary
Gross Income
Definition
Total earnings before any tax, contributions or other deductions are removed.
Gross income is the headline figure in a salary offer or a business's top line: everything earned before payroll tax, retirement contributions, insurance premiums and other withholdings. Lenders and landlords usually assess affordability against it, which is why a budget built on it rather than on what actually arrives tends to run short.
In a sentence
His gross income looked comfortable until tax and insurance came out of each paycheque.
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