noun
gross income
grohss IN-kum
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
1
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."
2
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 notesIn 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
Common pairings
annual gross income
gross income before tax
adjusted gross income
gross monthly income
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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
Rhymes for gross 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.
