What is the meaning of After-tax income?

After-tax income, sometimes called post-tax dollars, is the amount of income you have left after federal income taxes (plus state and local income taxes, if they apply) have been withheld. If you contribute to a individual retirement account (IRA), purchase an annuity, or invest in a taxable account, you are using after-tax income. In contrast, if you contribute money to an employer sponsored retirement plan or flexible spending account, you are investing pretax income.

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APABarry Goldsmith. (2010). After-tax income. Retrieved September 25, 2026, from http://smartdefine.org/after-tax_income/definitions/1147366
ChicagoBarry Goldsmith. 2010. "After-tax income" http://smartdefine.org/after-tax_income/definitions/1147366 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, After-tax income, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/after-tax_income/definitions/1147366>.
MLABarry Goldsmith. "After-tax income" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/after-tax_income/definitions/1147366>