disposable income

noun

: income that is left after paying taxes and for things that are essential, such as food and housing
I don't have enough disposable income to buy such luxuries.

Examples of disposable income in a Sentence

Recent Examples on the Web
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According to the Organization for Economic Cooperation and Development, in 2023 American households had $63,000 in disposable income, while French households had only $35,000 and British households had only $36,000. David Brooks, Mercury News, 31 May 2025 That was last month’s personal saving rate, or the proportion of disposable income Americans saved after monthly expenses, up from March’s 3.9%. Derek Saul, Forbes.com, 30 May 2025 The Education Department can garnish up to 15% of defaulted borrowers’ disposable income and federal benefits, as well as their entire federal tax refunds. Annie Nova,ali McCadden, CNBC, 18 May 2025 Per capita disposable income in Malipo was $2,300 a year last year, compared with about $69 a year in 1992. Eric Baculinao, NBC news, 17 May 2025 See All Example Sentences for disposable income

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Cite this Entry

“Disposable income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/disposable%20income. Accessed 11 Jun. 2025.

Legal Definition

disposable income

noun
dis·​pos·​able income
: income available for disposal: as
a
: the income remaining to an individual after deduction of taxes
b
: the income of a debtor in bankruptcy that is not necessary to support the debtor or the debtor's dependents
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