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

“Relative to the size of the economy and to the size of household disposable income, household debt is at quarter-century lows,” writes Stephen Stanley, chief U.S. economist for Santander.

From Barron's • Apr. 8, 2026

For people with limited disposable income, radio offered an affordable form of entertainment, and the medium experienced its heyday in the 1930s.

From The Wall Street Journal • Mar. 21, 2026

This type of support can give people more disposable income which, in theory, might free them up to buy the household goods they need.

From BBC • Mar. 11, 2026

Average disposable income - which measures the amount of money people have left to spend after they have paid tax – will give us an indication of households' spending power in the coming years.

From BBC • Mar. 3, 2026

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

From "Americanized" by Sara Saedi