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Net income is the money you have left after all expenses, taxes, and deductions are subtracted from your total earnings.
In Depth
Net income, also known as take-home pay, is the amount of money an individual or company earns after subtracting all costs, taxes, and deductions. For individuals, this means the amount that actually gets deposited into your bank account after things like federal and state taxes, Social Security, Medicare, and retirement contributions are taken out of your gross pay. It's a crucial figure for budgeting and understanding your actual spending power.
Example
After all deductions, Sarah's net income for the month was $3,500, which she used to pay her rent and groceries.