Glossary term
Taxable income
Taxable income is income after deductions. It is the starting amount used to apply personal income tax brackets.
Plain meaning
What taxable income means
Taxable income is not the same as gross income, net income for tax purposes, or take-home pay. It is the amount remaining after certain deductions have been applied and is used to calculate tax under bracket schedules.
Calculator context
How OpenBook uses it
OpenBook tax calculators often start from taxable income because bracket calculations can be shown more clearly from that point. A separate taxable income estimator can help build the amount from income and deduction inputs.
If taxable income is entered incorrectly, tax estimates and marginal-rate estimates can change materially.