unearned income

American

noun

income received from property, as interest, dividends, or the like.

unearned income British

noun

income from property, investment, etc, comprising rent, interest, and dividends

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The Social Security Administration considers free shelter to be unearned income, although he can avoid this reduction if he pays his fair share of household expenses.

From MarketWatch • Apr. 18, 2026

Yet Mr. Corinth and Ms. Mayhew did find that the larger and more credible studies—such as the one Mr. Altman backed—showed that unearned income has a negative impact on a person’s willingness to work.

From The Wall Street Journal • Mar. 24, 2026

The unearned income is taxed at the same rate as wages.

From Los Angeles Times • Jan. 8, 2026

That means any earnings from a Trump account will be included in the child’s total unearned income and taxed for the year if withdrawn before he or she turns age 59½.

From Barron's • Dec. 5, 2025

Pope, attitude to usury, 175. in favour of unearned income, 207.

From An Essay on Mediaeval Economic Teaching by O'Brien, George

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023