What is Take-home pay?

Take-home pay is the amount that actually reaches your bank account after income tax, payroll deductions and any pension or retirement contributions taken from your pay at source. It is usually well below your headline salary.

Why Take-home pay matters

A budget built on headline salary plans to spend money you never receive.

Related terms

• Budget
• Essential expenses

Lessons that use this term

• How much should I invest each month?

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