When you look at your pay stub, you may notice two different amounts. Your gross pay, the larger number, represents the total amount you’ve earned throughout a given pay period. Your net pay, on the other hand, shows how much money you’ll take home after taxes and other deductions. The two figures are both essential parts of personal finance, but they play different roles. Understanding how both types of income work could help you with tasks like developing a budget, filing taxes, and applying for credit cards.

Differences between Gross Pay vs. Net Pay
6 min read
Last Updated: October 3, 2025
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