net income

Definitions (2)

1. In business, what remains after subtracting all the costs (namely, business, depreciation, interest, and taxes) from a company's revenues. Net income is sometimes called the bottom line. also called earnings or net profit.
2. For an individual, gross income minus taxes, allowances, and deductions. An individual's net income is used to determine how much income tax is owed.

For more information, see Gross vs Net.

Use net income in a sentence

After the accounting department subtracted all necessary taxes and deductions from my paycheck, I received my net income for that pay cycle.

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