disposable income

American  

noun

1. the part of a person's income remaining after deducting personal income taxes.

2. (in national income accounting) the total disposable income of all consumers.

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disposable income British  

noun

1. the money a person has available to spend after paying taxes, pension contributions, etc

2. the total amount of money that the individuals in a community, country, etc, have available to buy consumer goods

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Etymology

Origin of disposable income

First recorded in 1945–50

Example Sentences

Some researchers are concerned retailers could use personal data to set higher base prices for individuals, without their knowledge, when algorithms detect things like urgent need or high disposable income.

From The Wall Street Journal • Jun. 5, 2026

The cost of a single masquerade, we are told—including admission and costume rental—equaled 132% of a middling family’s weekly disposable income.

From The Wall Street Journal • May 22, 2026

With the wealth effect from Americans’ vast holdings of stocks — at a record 250% of disposable income based on Federal Reserve flow-of-funds data — rising stock prices have been driving consumer spending.

From MarketWatch • May 21, 2026

"When disposable income falls, our businesses suffer. And right now, people have a lot less disposable income."

From BBC • May 1, 2026

My parents never openly discussed their money struggles, but I knew we didn't have disposable income.

From "Americanized" by Sara Saedi