Finance
What Is Gross vs. Net Income?
Gross income is earnings before deductions; net income is what remains after taxes and other withholdings — your take-home pay.
Gross income is the full amount earned before anything is taken out — the salary quoted in a job offer. Net income is what actually lands in your bank account after income tax, social security contributions, insurance premiums and other deductions.
The gap is substantial: depending on the country and bracket, net pay commonly runs 20–35% below gross. Budgets should always be built on net income, while loan qualifications and salary comparisons typically reference gross.