Personal Income

Updated: 29 February 2024

What Does Personal Income Mean?

Personal income is the total pre-tax amount of money a person has that is derived from a year of labor and other money-generating activities.

Insuranceopedia Explains Personal Income

Personal income may come from salaries or commissions, selling products and services, owning rental properties, or any other moneymaking endeavor. Personal income is the basis for taxation in countries that have progressive taxation policies. Average personal income is also taken to be an indicator of the level of prosperity of the overall economy.

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