disposable income

American  

noun

1. the part of a person's income remaining after deducting personal income taxes.

2. (in national income accounting) the total disposable income of all consumers.

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disposable income British  

noun

1. the money a person has available to spend after paying taxes, pension contributions, etc

2. the total amount of money that the individuals in a community, country, etc, have available to buy consumer goods

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Etymology

Origin of disposable income

First recorded in 1945–50

Example Sentences

They aren’t necessarily high income, but they allocate a large portion of their disposable income to buying clothing, executives said.

From The Wall Street Journal • Apr. 3, 2026

To be sure, the amount of households’ disposable income that goes toward gasoline has fallen over the years—muting the impact of higher prices on total aggregate spending trends.

From Barron's • Mar. 31, 2026

That figure could rise further by the end of the year, when households are projected to spend 4.3% more of their disposable income on energy costs than the year before, the agency’s analysts said.

From MarketWatch • Mar. 28, 2026

After adjusting for inflation, staple foods and energy in the U.S. cost less than they did 50 years ago and claim a smaller percentage of the average person’s disposable income.

From The Wall Street Journal • Mar. 17, 2026

My parents never openly discussed their money struggles, but I knew we didn't have disposable income.

From "Americanized" by Sara Saedi