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unearned income

American  

noun

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


unearned income British  

noun

  1. 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.

See Examples For:

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means any earnings from a Trump account will be included in the child’s total unearned income and taxed for the year if withdrawn before he or she turns age 59 ½.

From Barron's Dec. 23, 2025

It is thus, again, a variation of the system long adopted in this country of a special rate of income tax on what is called "unearned" income, i.e. income from invested property.

From War-Time Financial Problems by Withers, Hartley

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