ordinary income

American  

noun

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

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ordinary income

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

If this number is over $34,000 for a single person or $44,000 for a married couple, up to 85% of your Social Security benefit will be taxed as ordinary income.

From Barron's ● Jun. 24, 2026

This form of special debt-charge super-tax would enable the ordinary income tax to be reduced considerably at once.

From War-Time Financial Problems by Hartley Withers