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

See Examples For:

disposable income

Millions of American families are left needing to pay more and more to cover their bills, and with less disposable income.

From Salon ● Jul. 26, 2026

She has calculated that some people will need to spend around half of their disposable income on their food shop and that for families with children, the figure increases to about 85%.

From BBC ● Jun. 28, 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 a larger share of income is committed to fixed costs, even similar disposable income feels more constrained.

From The Wall Street Journal ● May 18, 2026

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

From "Americanized" by Sara Saedi