After tax income

After tax income is the income remaining after the government has subtracted income tax (and other related income taxes like national insurance) It does not take into account indirect taxes like VAT. These taxes are paid when consuming goods.

Another term for after tax income is disposable income.

Disposable income is often confused with discretionary income. Discretionary income is the income available to spend after also including taxes and normal living expenses.

Related

 

Item added to cart.
0 items - £0.00