ordinary income

American  

noun

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

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Example Sentences

See Examples For:

ordinary income

She pays ordinary income tax on the $60,000 cost basis.

From MarketWatch ● Sep. 10, 2026

For those who are unaware, ordinary income is taxed on a graduated schedule from 10% up to 37%, while long-term capital gains top out at 15% for most people and 20% at the highest incomes.

From MarketWatch ● Sep. 3, 2026

At that point, the investor’s tax rate on long-term capital gains will likely be lower than his or her rate on ordinary income.

From The Wall Street Journal ● Aug. 21, 2026

Those withdrawals were taxed as ordinary income at the top marginal rate, currently 37% on income over $751,600 for married couples.

From Los Angeles Times ● Aug. 14, 2026

In 1921 the receipts from this source were $308,025,102; and in many earlier years they were nearly half of the entire ordinary income of the national government.

From Government in the United States National, State and Local by James Wilford Garner

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