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RetireEarlyGuide
Financial Literacy

Take-Home Pay

The money that actually reaches you after taxes and deductions — your net income.

Take-home pay (net income) is what remains from your salary after taxes, retirement contributions and other deductions. Savings-rate calculations are usually based on take-home pay, since that is the money you can choose to spend or invest.

Examples

  • A $6,000 gross salary might become roughly $4,500 in take-home pay after deductions.

Related terms

Gross IncomeSavings RateTax Withholding

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