What is the result of subtracting taxes from gross income?

The result of subtracting taxes from gross income is known as net pay. Net pay refers specifically to the amount that an employee takes home after all deductions from their gross income, including taxes, social security, and other withholdings. It represents the actual earnings available to the employee for spending or saving.

Gross income refers to the total income earned before any deductions, while terms like net profit and total expenses pertain more to business finances and accounting rather than individual income. Net profit is generally used to describe the remaining income of a business after all expenses, including taxes, are deducted from total revenue, and total expenses encompass all costs incurred by a business, not just taxes. Therefore, net pay appropriately encapsulates the remaining amount available to an individual after taxes have been taken out of their gross income.