ordinary income

American  

noun

1. taxable income, as salary and wages, other than capital gains.

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Example Sentences

But the money isn’t tax-free when you withdraw it down the road, either: It’s taxed on withdrawal as ordinary income, like with a traditional IRA.

From MarketWatch • Apr. 9, 2026

You would not face the 10% early withdrawal penalty, even if the money would still be taxed as ordinary income.

From MarketWatch • Apr. 6, 2026

These forced withdrawals are payback for years of valuable tax deferral and are taxed at ordinary income rates.

From The Wall Street Journal • Apr. 3, 2026

But they are more valuable as offsets to short-term gains because short-term gains are taxed at the same rates as ordinary income as high as 37%.

From Barron's • Mar. 21, 2026

Such extravagances I cannot afford from my ordinary income.

From Correspondence of Wagner and Liszt — Volume 1 by Hueffer, Francis