Explore commonly used personal finance terms.
After-tax income represents the amount of income remaining once all federal, state, and local taxes have been subtracted. For individuals, after-tax income is the net income available for living expenses, savings, or investments. For companies, it represents the earnings left to reinvest, distribute as dividends, or retain as reserves. Calculating after-tax income helps individuals and businesses accurately assess their spending power and budget effectively while understanding the impact of tax liabilities on financial decisions.
