Definition of Personal income:
Personal income refers to all income collectively received by all individuals or households in a country. Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.
Total of an individuals all earnings during a period, such as salary or wages, profits realized from passive enterprises, and dividend, interest, and rental income.
The term “personal income” is sometimes used to refer to the total compensation received by an individual, but this is more aptly referred to as “individual income.” In most jurisdictions personal income, also called “gross income,” is subject to taxation above a certain base amount.
How to use Personal income in a sentence?
- Personal income is the amount of money collectively received by the inhabitants of a country.
- Sources of personal income include money earned from employment, dividends and distributions paid by investments, rents derived from property ownership, and profit sharing from businesses.
- Personal income is generally subject to taxation.
Meaning of Personal income & Personal income Definition