noun

gross income

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Gross income (noun) means the total amount a person earns before tax, pension contributions and any other deductions are taken out. Example: “Lenders usually look at your annual gross income when working out how much you can borrow.”

noun

The total amount a person earns before tax, pension contributions and any other deductions are taken out.

"Lenders usually look at your annual gross income when working out how much you can borrow."

"Her gross income was £48,000, but she took home considerably less."

accounting For a business, total revenue from sales minus the direct cost of the goods sold, before operating expenses and tax.

"Gross income fell because raw material prices rose faster than prices at the till."

How to use gross income

Learner’s notes

In plain EnglishWhat you earn before anything is taken off.

When to use it

Standard in finance, tax and lending. Payslips often label the same figure 'gross pay'.

Memory tip

Remember the order: gross first, deductions next, net last.

Easily confused with

net income gross profit adjusted gross income turnover →

Common pairings

annual gross income gross income before tax adjusted gross income gross monthly income

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Fill the gap

Can you complete this real example?

Lenders usually look at your annual _____ when working out how much you can borrow.

Synonyms

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gross profit

Antonyms

net income take-home pay

Related words

profit gross salary

Rhymes for gross income

ome some come home Rome nome tome dome gnome genome become income

See all rhymes for gross income →

Frequently asked questions

What is the difference between gross income and net income?

Gross income is everything you earn before deductions. Net income is what actually reaches your bank account after income tax, national insurance or social security, pension contributions and any other deductions. Landlords and lenders normally ask for gross; budgeting is best done on net.

What is adjusted gross income?

It is a United States tax term: gross income minus certain permitted deductions, such as some retirement contributions and student loan interest. It sits between gross and taxable income and determines eligibility for many tax reliefs.

Does gross income include bonuses and overtime?

Yes. Gross income covers all earnings before deductions, including overtime, bonuses, commission, tips and, in most definitions, other income such as rent or interest received.

What is the meaning of gross income?

"gross income" (noun) means the total amount a person earns before tax, pension contributions and any other deductions are taken out.

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