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

Withdrawals are taxed like ordinary income, inflation included.

From The Wall Street Journal ● Sep. 8, 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

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

Payouts arrive throughout the year and carry a tax advantage over standard interest income, as qualified stock dividends are typically taxed at lower long-term capital-gains rates rather than ordinary income rates.

From The Wall Street Journal ● Aug. 6, 2026

Throughout the following year Claes was grave and preoccupied; and yet, though he made a few inexpensive experiments for which his ordinary income sufficed, he seemed to neglect his laboratory.

From The Alkahest by Katharine Prescott Wormeley