What does income mean?
Income means money or other valuable resources that come into the possession or control of a person, household, business, or government. It may come from employment, self-employment, investments, property, sales, benefits, taxation, or any other productive activity. The word is especially common in personal finance, economics, taxation, and business, where discussions may concern annual income, household income, income tax, or sources of income. Unlike salary, which usually refers specifically to pay for work, income is a broad term. Unlike profit, it does not necessarily subtract business expenses from the money received. In its most common sense, income is countable, as in “a high income” or “an additional source of income,” and it can be modified to indicate amount, regularity, type, or origin.
nounMoney or other resources received by a person, household, business, or government, especially as payment for work, goods, services, or property. Income can also refer generally to the resources or benefits that come from a particular source or activity.
- Money or other resources received, especially as payment for work, goods, services, property, or investments.
"The family earns a comfortable income from teaching and freelance writing."
"Her income is not high, but she manages her money carefully."
"The company reported an increase in income from overseas sales."
The regular plural is used when referring to different sources or amounts of income.
"The charity relies on several different incomes from grants and donations."
Income follows the word 'in': it is what comes in, whether from a salary, a sale, rent, interest, or an unexpected windfall.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does income come from?
Income is an English compound formed from the prefix in- and the word come, literally expressing the idea of something that comes in. The verb come derives from Old English cuman, while the prefix in- is an English formation expressing movement or entry into something. The resulting noun developed in Middle English and was established well before the modern financial sense was fully specialised. Its modern meanings reflect both the original idea of incoming resources and the later distinction between money received and profit after expenses.
Related word forms
How income is actually used
Income is a general term that can refer to an individual, a household, or an organisation. In personal contexts it is often countable, as in a regular or part-time income, while in economic discussion it may refer collectively to a population's total earnings. It is broader than salary, which usually means pay from employment, and broader than profit, which specifically concerns what remains after expenses.
Easily confused with income
Income is generally the money received by an individual or household, whereas revenue refers to the total income generated by a business or organisation before expenses are deducted.
Income is money received, while profit is the amount remaining after a business's costs and expenses have been subtracted from its revenue.