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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.


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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of disposable income

First recorded in 1945–50

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

"Tourism relies on people's disposable income," he explains.

From BBC • May 1, 2026

“The consumer is still a little bit muted,” said Andre Schulten, P&G’s chief financial officer, although larger tax refunds were a “bright spot” for Americans that boosted disposable income.

From The Wall Street Journal • Apr. 30, 2026

Real disposable income fell 0.1%—the second straight month of declines, according to data released by the Bureau of Economic Analysis on Thursday.

From Barron's • Apr. 30, 2026

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

From "Americanized" by Sara Saedi

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