Accounting Dictionary

Take-home Pay

Take home pay is gross pay minus deductions for tax, insurance, charity, and other items. It is the amount of pay workers actually get to take home.

John made $6000. He pays $1000 in taxes, $1200 in health insurance, and $400 to United Way. John’s take home pay is $3400 ($6,000-1,000-1200-400).

Related Terms:

FICA Gross Wages Net Income

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