Gross vs Net Income: What’s the Difference?

Understanding the difference between gross income and net income is essential when evaluating your paycheck.

What Is Gross Income?

Gross income is the total amount you earn before any taxes or deductions. This includes salary, hourly wages, bonuses, and commissions.

What Is Net Income?

Net income is the amount you take home after taxes and deductions are subtracted from your gross income.

Why the Difference Matters

Job offers are usually quoted in gross income, but your actual spending power depends on net income.

Calculate Your Income

Use our After Tax Salary Calculator or Net Income Calculator to estimate your take-home pay.

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