What term refers to the amount of income left after taxes and deductions have been taken out?

The term that describes the amount of income remaining after taxes and deductions have been taken out is known as net pay. This figure represents what an employee actually takes home in their paycheck after all mandatory and voluntary deductions, including income taxes and retirement contributions, have been accounted for.

Net pay is essential for budgeting and financial planning, as it accurately reflects the income that can be spent or saved by an individual. Understanding net pay is crucial for analyzing personal finances, as it informs decisions related to expenses, savings, and investments.

While gross pay represents the total earnings before any deductions, and taxable income refers to the portion of income subject to taxation, the term disposable income typically relates to the amount available for spending and saving after all necessary taxes have been deducted but doesn't specifically address deductions. Thus, net pay is the most precise term for income remaining after all relevant deductions have been applied.