take-home pay
noun
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Definition of take-home pay
Examples of take-home pay in a Sentence
Recent Examples on the Web
The tax cut law passed at the end of 2017 added hundreds of dollars to many middle-class families' take-home pay last year, according to the Tax Policy Center. — Anchorage Daily News, "U.S. consumers are holding up global economy, but for how long?," 17 Aug. 2019 To further account for real-life factors, USA TODAY applied the federal tax rate for single filers to each salary figure to estimate elementary teachers’ take-home pay in each metro. — USA Today, "'Can't pay their bills with love': For many teaching jobs, teachers' pay can't cover rent," 5 June 2019 According to Campbell, take-home pay is the top priority for drivers. — Patrick Sisson, Curbed, "Lyft is spending $100M on new hubs for drivers," 23 May 2018 In Morgan County, Sheriff Greg Bartlett fed his prisoners from a truckload of old corn dogs twice a day, bumping his take-home pay by $212,000, and his successor, Anna Franklin, pumped her jail food funds into a shady car lot. — al.com, "How many Alabama sheriffs are crooked? DOJ needs to give us an answer," 26 June 2019 In general, aim to spend less than 10% of your take-home pay on your car loan and less than 15% to 20% of it on overall costs. — Washington Post, "Car payment trouble? How to turn it around," 20 June 2019 This was despite the fact that the costs of working in regulated establishments, with guards and panic buttons and the requirement that workers pay taxes, meant their take-home pay was much reduced. — R.w. | New York, The Economist, "The push to decriminalise sex work in New York," 19 June 2019 Many educators view Florida leaders as hostile to public education, passing laws and budgets in the last decade that made their work and their take-home pay less desirable. — Leslie Postal, orlandosentinel.com, "Seminole teachers to vote on 3% raises, salary negotiations continue in Orange, Lake," 18 June 2019 No matter how things get sliced, many workers will see their take-home pay drop as a result. — Jon Chesto, BostonGlobe.com, "State leaders agree to a three-month delay for paid-leave taxes," 11 June 2019These 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.
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More Definitions for take-home pay
take-home pay
nounFinancial 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
English Language Learners Definition of take-home pay
See the full definition for take-home pay in the English Language Learners Dictionary